2018 (1) TMI 1468 - AT - Customs

Imported Goods Misdeclaration Appeal Successful: Confiscation Orders Reversed

NAVEEN IMPEX Versus COMMISSIONER OF CUSTOMS, GHAZIABAD

NAVEEN IMPEX Versus COMMISSIONER OF CUSTOMS, GHAZIABAD - 2018 (363) E.L.T. 841 (Tri. - All.) Issues involved:1. Misdeclaration of imported goods as re-rollable scrap under chapter heading 7204 instead of defective iron plates under chapter heading 7208.2. Confiscation of goods and imposition of penalties due to alleged violations in import procedures.3. Adjudication of whether the imported goods qualify as re-rollable scrap or as metal waste and scrap.Detailed Analysis:1. The appellant filed a Bill of Entry for import of goods declared as re-rollable scrap under chapter heading 7204, attracting a 5% duty. However, customs officers found the goods to be defective iron plates of varying sizes, shapes, and thickness, more appropriately classifiable under chapter heading 7208. The Revenue alleged misdeclaration and violation of import regulations, calling for confiscation and penalties.2. The appellant explained that the goods were iron plates of different sizes, shapes, and thickness, with rough edges and old, contending them to be re-rollable scrap unsuitable for use as sheets. The original adjudicating authority confiscated the goods with an option for redemption on payment of a fine and imposed a penalty. The Commissioner (Appeals) upheld this decision, leading to the present appeal.3. Upon review, the Tribunal found the goods to be defective iron plates with cut edges, varying sizes, and unsuitable for use as sheets due to wear and tear. Considering the characteristics of the goods, including breakage and wear, the Tribunal concluded that they qualify as metal waste and scrap, usable only through remelting. Consequently, the misdeclaration allegation was dismissed, and the impugned orders for confiscation and penalties were set aside, allowing the appeal with consequential relief.