2014 (9) TMI 522 - HC - Customs

Appellate Tribunal Upholds Duty Imposition on Imported Goods

COMMR. OF CENTRAL EXCISE, MADURAI Versus SRI RENGA STEEL CORPORATION

The Appellate Tribunal upheld the duty imposition on imported goods as scrap materials, dismissing the appellant's claim that usable items were present. ... Import of usable material as scrap materials from Malaysia - whether the respondent is liable to pay duty on the basis of usable things or on the basis of scrap materials. - Held that:- in the statement alleged to have been given by one of the partners of the respondent, only small quantity as well as length of wires have been mentioned. Under the said circumstances, the Court can come to a conclusion that the things which are in question cannot be couched as usable things. The Appellate Tribunal, after considering the available materials on record, has rightly found that the things in question are nothing but scrap materials. - Decided against the revenue. Issues:Determining liability for duty on imported goods based on whether they are usable things or scrap materials.Analysis:The case involves an appeal against a show cause notice issued to the respondent for importing scrap materials from Malaysia, alleged to contain usable articles. The Commissioner of Central Excise confirmed the demand, leading to an appeal before the Appellate Tribunal. The Tribunal set aside the original order, initiating a de novo proceeding where redemption fine and penalty were reduced. The present appeal questions whether duty should be paid on usable things or scrap materials.The appellant argues that the respondent misrepresented the imported goods as scrap materials when they actually contained usable items. The Commissioner's report and a partner's statement support this claim. However, the respondent maintains that only scrap materials were imported, and any usable items were allowed to be taken after mutilation. The appellant concedes that the Commissioner did not note down the features of the items in question.The appellant's argument relies on the Commissioner's report and the partner's statement, which mentioned the existence of wires. The respondent counters that the wires were small and not in cable form, justifying their treatment as scrap materials. The partner's statement lacked a detailed description of the items, further supporting the respondent's position.Ultimately, the Appellate Tribunal correctly determined the imported goods as scrap materials, leading to the duty being imposed accordingly. The Court found no merit in the appellant's contentions, upholding the Tribunal's decision. Consequently, the Civil Miscellaneous Appeal was dismissed without costs.