Misdeclaration of aluminium scrap grade justified confiscation where imported goods were actually restricted Troma scrap.

Aluminium scrap declared as "Trump" grade was found on examination to be unserviceable aluminium wheels falling under ISRI grade "Troma", and the importer's own partner ed that classification. Because "Troma" grade was not freely importable under Exim Code 7602 of the ITC(HS) classification read with the Foreign Trade Policy 2004-09 and the Foreign Trade (Development and Regulation) Act, 1992, the import was contrary to the applicable policy. The unchallenged examination reports supported misdeclaration, so confiscation was justified, and the redemption fine and penalty were maintained as proportionate to the consignments.

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Issues: Whether aluminium scrap imported as "Trump" grade was correctly held to be misdeclared as it was actually "Troma" grade and, consequently, liable to confiscation with redemption fine and penalty.

Analysis: The goods were declared as aluminium scrap of "Trump" grade, but examination showed that they were unserviceable aluminium wheels falling under ISRI grade "Troma". The examination reports were not challenged, and the importer's partner admitted that the goods were classifiable as "Troma". Since "Troma" grade was not freely importable under Exim Code 7602 of the ITC(HS) classification read with the Foreign Trade Policy 2004-09 and Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, the import was contrary to the applicable import policy. The redemption fine and penalty were also considered appropriate having regard to the value of the consignments.

Conclusion: The misdeclaration and confiscation were upheld, and no reduction was warranted in the redemption fine or penalty.

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