V.H. SAFIQUR REHMAN AND ANR. Vs. CC

JUDGEMENT

(1.) THE miscellaneous application filed for early hearing is considered. As goods are still under clearance, early hearing is granted. Stay applications taken up, and after granting waiver of duty and penalty in the matter, appeals are taken up and are disposed of with the consent of both the sides.

(2.) ON 19.5.1999 the DRI officers at Bangalore entered the fray, and investigated about this consignment. They conducted an operation under Mahazar and determined that the consignment consisted majority of copper and brass coated new sheets along with 'busheling scrap', and recorded the statement of various personnel and thereafter a show cause notice was issued by the Additional Director -General, Revenue Intelligence. This show cause notice was replied and adjudicated by the Ld. Commissioner after considering the reply of the appellants, at page 9 para (c); details of the quantity of copper coated non alloy sheets is shown to be 10.5 MTs, Metal sheets 214.941 MT and bushelings scrap as 8 MT; and duties have been worked out in respect of sheets and scraps to be Rs. 13,67,985.70 and Rs. 8,155/ - respectively. However, 'bushelings scrap' in Bill of Entry 7087 was assessed for Rs. 97,220/ - aggregating to Rs. 1,78,790/ - out of which duty of Rs. 81,570/ - was paid on 14.5.1999 as per the endorsement on the Bill of Entry 7083 dated 13.5.1999 and considering the duty payable and duty actually paid, the differential duty of Rs. 12,94,580.70 was found and alleged to be evaded and confirmed in the order impugned. The goods were ordered to be confiscated on the charge of concealment and mis -declaration of quantity and description under Section 111(d), (1) & (m) of the Customs Act, 1962 and were ordered to be redeemed, on payment of a fine of Rs. 10,00,000/ -. The 8 MT bushelings were used as a cover for concealment of metal sheets and the same was ordered to be confiscated under Section 119 of the Customs Act and was given an option to be redeemed on payment of fine of Rs. 12,000/ -. Differential duty of Rs. 12,94,581/ - under Section 28(1) of the Customs Act was determined and demanded along with interest @ 20% and penalty of Rs. 12,94,581 / - under Section 114A was imposed on the importing company and a penalty of Rs. 5,00,000/ - on the Managing Director was also imposed.

(3.) WE have heard Ld. Advocate Shri V. Balasubramanian for the appellants, who has submitted the definition of 'bushelings scrap' as obtained by him through the Internet from American iron and Steel Institute, which reads as follows: