2007 (6) TMI 447 - AT - Customs

CESTAT Kolkata: Duty demands upheld for steel scrap imports despite end-use certificate. Procedural lapses noted.

The Appellate Tribunal CESTAT, Kolkata addressed the issue of exemption under Notification No. 83/90-Cus for imported melting scrap of steel. Despite ... Demand - Exemption to melting scrap Issues:- Applicability of exemption under Notification No. 83/90-Cus.- Shortfall in quantity of imported melting scrap of steel.- Failure to produce end-use certificate for specific quantities.- Non-involvement of Port Trust Authority as a respondent.- Lack of weighment particulars for clearance of goods.- Failure to claim shortage from canalizing agents.- Confirmation of duty-demands by authorities.Analysis:The judgment by the Appellate Tribunal CESTAT, Kolkata dealt with the issue of exemption under Notification No. 83/90-Cus. The appellants had imported melting scrap of steel under this exemption but fell short of the required quantity. Despite producing an end-use certificate, the shortfall was significant, leading to duty-demands being confirmed by the authorities. The tribunal noted that the appellants failed to involve the Port Trust Authority as a respondent, as required by Rule 12 of the CESTAT (Procedure) Rules. The absence of weighment particulars for the goods' clearance further complicated the matter, as no evidence supported the claim of shortage in delivered quantity.The tribunal highlighted that the appellants did not take necessary steps to obtain information from the Port Trust Authority regarding the actual quantities delivered. The appellants' failure to claim the shortage from the canalizing agents added to the lack of evidence supporting their case. Additionally, the tribunal referenced a letter from the C.B.E.C, New Delhi, emphasizing the importance of physical weighments for cancellation of end-use bonds, which were not conducted in this case. Due to the absence of weighment particulars and failure to provide substantial evidence of the shortfall, the tribunal dismissed both appeals and confirmed the duty-demands for the quantities lacking proper end-use certificates.In conclusion, the judgment underscored the importance of fulfilling procedural requirements, involving relevant authorities, and providing concrete evidence to support claims in cases involving duty exemptions and quantity discrepancies. The failure to adhere to these aspects led to the dismissal of the appeals and the confirmation of duty-demands by the tribunal.