2014 (5) TMI 786

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....4.29 of the Customs Tariff Act, 1975. The goods were examined. On examination it was found that 50% of the goods are scrap but defective and serviceable and remaining 50% are unserviceable and scrap. Therefore, the adjudicating authority confiscated the consignment and imposed redemption fine and penalty. Against the said order, respondent filed the appeal before the Commissioner (Appeals) who considered the submissions and passed the impugned order. Aggrieved from the said order, Revenue is before us. 3. Heard the ld. AR, who submitted that as per the report filed by M/s. Anand Kulkarni & Associates, which has held that 50% of the scrap are serviceable scrap and 50% are unserviceable scrap. Therefore, impugned order is to be set asid....

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....ed as damaged and unusable and therefore unserviceable scrap. Moreover, the second part of the report says "... however being on the conservative side...", which means that the report is given on a conservative estimate and therefore is not based on actuals. I accordingly find that the report of M/s. Anand Kulkarni & Associates in treating half the consignment as serviceable scrap and other half as unserviceable is based on presumption and not on the factual inspection done by them. Thus, this report of M/s. Anand Kulkarni & Associates cannot be accepted as a factually correct report. The entire case of the department relating to misdeclaration is based on this report. As the said report is factually not correct, there is no merit in the al....