Classification of mixed metal goods as heavy melting scrap upheld, with confiscation, redemption fine and penalty not restored.

Imported nails and screws declared as heavy melting scrap were treated as scrap for customs purposes where the jurisdictional Superintendent's report stated that the goods were melted in the furnace and the record did not show a contrary case of intended sale or reuse. The challenge to that report, based on alleged lack of physical supervision, was not supported by the report itself. Heavy melting scrap was considered capable of covering scrap of screws and nails, and reliance on the end use certificate was found reasonable. The finding that the consignment was scrap was upheld, and confiscation, redemption fine and penalty were not restored.

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Issues: Whether the imported goods, consisting of nails and screws found in the consignment declared as heavy melting scrap, could be treated as scrap so as to justify setting aside confiscation, redemption fine and penalty.

Analysis: The goods were declared as heavy melting scrap and exemption was claimed under Notification No. 21/2002 as scrap. The appellate finding treating the consignment as scrap was supported by the report of the jurisdictional Superintendent stating that the impugned goods were melted in the furnace. The challenge that the report was not based on physical supervision was not borne out from the report itself. The record also did not show any assertion at the stage of adjudication or investigation that the goods were meant for sale or reuse. Heavy melting scrap was held capable of including scrap of screws and nails, and the use of the end use certificate to resolve the dispute on the character of the goods was found reasonable.

Conclusion: The finding that the consignment was scrap was upheld and the confiscation, redemption fine and penalty were not restored.

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