Heavy melting scrap classification requires credible evidence; unsupported revaluation and penal consequences were set aside.

Classification and valuation of imported goods must rest on contemporaneous, credible evidence, not on suspicion or presumption. The imported consignment was described consistently as heavy melting scrap in the bill of entry, commercial invoice, packing list and pre-shipment inspection certificate, and the jurisdictional Central Excise end-use certificate also supported that description. As the revenue produced no evidence that the goods were not scrap and relied on no contemporaneous imports or technical expert opinion to justify enhancement, the misdescription finding and reclassification were unsustainable. The enhanced value, confiscation, redemption fine and penalty were therefore set aside.

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Issues: Whether the imported consignment was correctly classifiable as heavy melting scrap and whether the enhancement of value and consequential confiscation, redemption fine and penalty could be sustained.

Analysis: The goods were described as heavy melting scrap in the bill of entry, commercial invoice, packing list and pre-shipment inspection certificate. The end-use certificate issued by the jurisdictional Central Excise authority also supported the claim that the goods were used as melting scrap in manufacture. No evidence was produced by the revenue to show that the goods were not scrap, and no contemporaneous imports or technical expert opinion were relied upon to justify the enhanced value. The finding of misdescription and reclassification was therefore based on assumption and presumption rather than evidence.

Conclusion: The imported goods were held to be heavy melting scrap, the enhancement of value was unsustainable, and the confiscation, redemption fine and penalty were set aside in favour of the assessee.

Final Conclusion: The appeal succeeded and the impugned order was set aside in full.

Ratio Decidendi: Classification and valuation of imported goods must rest on contemporaneous and credible evidence, and cannot be sustained on mere suspicion when the documentary record and supporting certificates establish the declared description.

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