VIRAJ IMPEX LTD. Vs. CC

JUDGEMENT

(1.) APPELLANT 's, a company registered under the Companies Act, 1956 are engaged in the business of import of iron and steel and its whole sale trade. During the year 1998 -1999, they in the course of the normal trade, on 20 contracts entered into on DA (i.e. documents on acceptance) 180 days from Bill of Lading date, basis imported and cleared consignments of Hot -rolled Coils defective/secondary. The last such contract entered was for 40,000 MTS, No. 9815 dated 26.11.1998 & the shipments were made and cleared by Customs. A contract no 9817 was, thereafter on date 1.12.1998 for shipments to be made during the period from 1999 to March 1999 totalling 25,000 MTS No. entered, at price of USD 180 DMT.

(2.) BY notification No. 34/(RE -1998)/1997 -2002 dated 10.12.1998 the EXIM POLICY 1997 -2002 & ITC (MS) classification for the subject goods was amended as "Secured and Defective items specified below is permitted for imports free, except those there of which the value in below the value specified" and for HR Coils (TMQ) such Horr price specified was USD 232. The appellants wrote to their suppliers vide letter dated 15.12.1998, for cancellation of contract No. 9817 dated 1.12.1998. The suppliers insisted on performance, as they in turn had placed an order for purchase with another firm. The imports were consequently effected 22.2.1999 & BE's were filed on 4.3.1999. Customs Authorities did not find the declaration of Quantity, Price etc to be incorrect. However, they interdicted the imports for infringement of Section 111(d) as price was below the Horr price fixed for Licence free import. Goods were confiscated and ordered to be redeemed on fine and appeared for redemption fine of Rs. 1.1 crores, after he Commissioner came to the following conclusion - -

(3.) IN view of the finding arrived, the orders of the Commissioner are required to be aside.