Misdeclaration in scrap imports rejected where usable-looking pieces were incidental and the importer used the material for melting.

Imported iron and steel scrap was not treated as misdeclared merely because the consignment contained some serviceable-looking pieces, since scrap may naturally include rods, pipes, sheets or angles and the importer was an actual user bringing material for melting in its factory. On the facts recorded, there was no showing that the goods were purchased as manufactured articles or that the declaration was false. The misdeclaration charge therefore failed, and the confiscation and penalties were set aside, while valuation and assessment were left undisturbed.

---

---

Issues: Whether the imported consignment of iron and steel scrap was misdeclared so as to justify confiscation and penalty.

Analysis: The consignment consisted of assorted scrap in different shapes and forms, and scrap by its nature may contain usable-looking items such as rods, pipes, sheets or angles. The record did not show that the goods were purchased as manufactured articles, and the importer was an actual user importing the material for melting in its factory. The mere presence of serviceable pieces and incidental non-scrap material did not establish a false declaration on the facts found.

Conclusion: The charge of misdeclaration was not sustainable, and the confiscation and penalties were set aside. The valuation and assessment were not interfered with.

---