TaxTMI 
TaxTMI 
2011 (3) TMI 233
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....00 per ton (CIF) based on invoices issued by the supplier. Both the imports were from Mexico . As para 2.32 of the Foreign Trade Policy in force at the time required a Pre-shipment Inspection Certificate to be produced from the supplier to the effect that the consignment imported from a country affected by rebellion/war did not contain any type of arms, ammunition, mines, shells, cartridges, radioactive contaminated or any other explosive material in any form, the consignments were examined on first check basis, whereupon it was found that each consignment contained considerable quantities of secondary/defective stainless steel sheets and secondary/defective stainless steel strips in addition to stainless steel melting scrap. A subsequent r....
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....er Section 108 of the Customs Act. One Shri R.J. Virwadia, partner of both the firms, stated that he had made inquiries with the overseas supplier and received information to the effect that the goods were supplied as stainless steel melting scrap 304 grade only. He also stated that he never intended to import stainless steel sheets in the guise of stainless steel melting scrap. Subsequently, on 29.3.2005, the importers accepted the composition of the consignments as brought out in the examination reports. 3. From the above, it appeared to the department that the importers had misdeclared the description and value of the goods and also violated the provisions of the Foreign Trade Policy/2004-2009 by not producing Pre-shipment Insp....
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....unsel has reiterated the grounds of the appeals. He, further, submits that there was no way for the appellants at the time of import to know that Mexico was affected by war or rebellion and therefore it cannot be said that they deliberately violated any provision of the Foreign Trade Policy by not producing inspection certificate from supplier. 6. The learned JDR submits that misdeclaration stands admitted. He submits that the fact that Mexico was a war/rebellion affected country at the material time was clearly alleged in the show-cause notices but not denied by the appellants. They ought to have produced Pre-shipment Inspection Certificate from the overseas exporter as required under para 2.32 of the Foreign Trade Policy/2004-20....
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.... 8. We are primarily concerned with the decision of the Commissioner confiscating the goods (with redemption fine) and imposing penalties on the importers. As rightly submitted by the learned JDR, misdeclaration of description of the goods was admitted by the importers, who, in separate letters, accepted the results of re-examination of the goods. The re-examination reports had clearly brought out the fact that the consignments were composed mainly of serviceable stainless steel sheets, whereas what was declared in the bills of entry was stainless steel melting scrap. When the examination reports were accepted, the misdescription of the goods stood admitted. The examination reports had also brought out certain contemporaneous import prices....