Provisional release of imported goods cannot be made subject to mutilation when scrap classification lacks reliable supporting evidence.

A mutilation requirement for provisional release of imported goods was found unjustified where the department's scrap classification rested mainly on an uncorroborated visual examination. The Chartered Engineer's report was not supported by market enquiry, laboratory testing, metallurgical evidence, or overseas verification, and that weakness also affected consignments described as new CRGO sheets. In the absence of reliable technical or market evidence displacing the declared description, the goods were treated as releasable on a provisional basis against declaration value and bond conditions, without the mutilation condition.

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Issues: Whether the condition requiring mutilation of the imported goods for provisional release was justified, and whether the goods were shown to be scrap so as to be released without mutilation.

Analysis: The Chartered Engineer's report, relied upon by the department, was based substantially on visual examination and was not supported by market enquiry, laboratory testing, or technical evidence from a metallurgical expert. For consignments found to have originated from dismantled old transformers, the material was treated as scrap in earlier decisions and the same reasoning applied. As regards the consignments described as new CRGO sheets, the report did not furnish convincing reasons or independent evidence to displace the declared description, and the absence of corroborative testing or overseas enquiry weakened the department's case. In these circumstances, mutilation was held to be unnecessary for provisional release.

Conclusion: The condition of mutilation was set aside and the goods were held releasable on provisional basis on declaration value and bond conditions only, in favour of the assessee.

Final Conclusion: The provisional release order was modified by removing the mutilation requirement, while retaining provisional assessment and bond obligations for release of the goods.

Ratio Decidendi: A mutilation condition for provisional release cannot be sustained where the conclusion that imported goods are not scrap is based only on an uncorroborated visual report and there is no reliable technical or market evidence displacing the declared description.

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