1988 (5) TMI 174 - AT - Central Excise

Tribunal overturns fine for importing goods misclassified as bright steel bars

The Tribunal set aside the confiscation and fine imposed on the appellants for importing goods classified as bright steel bars without proper licenses. ... Classification of goods Issues:- Determination of whether the imported goods are bright steel bars.- Validity of the import licenses produced by the appellants.- Contradictory findings of the adjudicating authority.- Reliance on visual examination versus expert opinion.- Consideration of past import practices and established precedents.Analysis:1. The case revolves around the classification of imported goods as bright steel bars and the validity of the import licenses presented by the appellants. The Department contended that the goods were bright steel bars, not covered by the licenses, leading to confiscation and a fine. The key question was whether the goods fell under Appendix 5 or Appendix 7 of the AM 1981 Policy.2. The adjudicating authority based its decision on visual examination, deeming the goods as bright bars. The appellant's advocate argued that the authority's findings were contradictory, as the brightness was incidental, not deliberate. The advocate cited past import instances and legal precedents to support releasing the goods with a warning, rather than confiscation.3. The appellant's advocate also challenged the authority's assumption of expertise and urged for an expert examination. The authority's reliance on visual inspection was contested, emphasizing the lack of a clear expert opinion categorizing the goods as bright bars.4. Upon review, the Tribunal acknowledged the contradictory nature of the adjudicating authority's findings. Despite the visual appearance, the goods had acquired brightness incidentally, not intentionally. Considering the appellant's reputation as a manufacturer and the absence of explicit expert confirmation, the Tribunal deemed the confiscation unjustified and set aside the impugned order, providing relief to the appellants.