TaxTMI 
TaxTMI 
2016 (12) TMI 427
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....the same were confiscated and offered for release on a redemption fine. Penalty has also been imposed on M/s. Oswal Industries Ltd. under Section 112 of the Customs Act. Revenue has also filed an appeal against the said order on the ground the confirmation of demand under Section 18 of the Customs Act and the same needs to be confirmed under proviso to Section 28 of the Customs Act. Revenue has also filed appeal challenging the non-imposition of the penalty equal of the duty evaded under Section 114A of the Customs Act and recovery of interest. 2. OIL had imported three containers of material which was declared as Stainless steel melting scrap. The same was examined by the DC dock. Three different bills of entry were filed for three contai....
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.... Some cut length of SS sheets taken out from bunch are having original manufacturers marking on cut length of sheets, length wise giving details of size and SS internal grade, which are checked dimensionally and found exactly as per these details. (v) There are some small cut pieces in Triangle & ring shape which are found slightly oily, dusty and can be treaded as scrap material. (vi) Substantial quantity of containers appears to be filled with SS cut length sheets and balance by off cut like triangle/ ring shape in various thickness approx 0.8 to 3mm thicknesses. (vii) Sheets of random width and length cut pieces packed properly can be treated as SERVICEABLE SHEETSsuitable for some particular application. (viii) However, this fact....
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.... IN ITALY, SS GRADE 304 thk x W x L Mix 7) Also found some self design sheet having surface coated with plastic sheet 1.3mm thk x 1250 mm x length more than 1 mtr. On the strength of the aforesaid report, revenue alleged that the goods are of serviceable nature and cannot be treated as scrap. Revenue alleged that importer had misdeclared the goods as scrap. Accordingly, revenue relied on the following contemporaneous imports and enhanced the value of the serviceable scrap to US $ 910/MT Sr. No. B/E No. & Date Description Importer Supplier Qnt. Price p.m.t. (in US$) 1 373995 dt. 17.7.03 S.S. Steel Hot rolled sheets AISI 304 Ex-stock M/s. Trishul Impex, Bhiwandi M/s. Royal Global Export Pte Ltd., Singapore 18....
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....he Customs Act and not under Section 28 of the Customs Act. Aggrieved by the said order, OIL are before the Tribunal. The revenue has also challenged this order on the ground that the demand should have been confirmed under Section 28 of the Customs Act and not under Section 18 of the Customs Act as the assessment was not provisional. The order has been challenged by the revenue for non-imposition of penalty under Section 114A; demand should have been confirmed under Section 29 and equal penalty under Section 114A should have been imposed. 3. Ld. counsel for OIL argue that such material in the market parlance is known as scrap. The material has been imported as stainless steel scrap and most of it has been used for the said purpose of melt....
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.... provision of assessment and demand should have been done under Section 18 of the Customs Act. The goods were finally assessed however, the same was seized after assessment and therefore, show-cause notice invoked Section 28 for recovery of duty. He argued that it was not open to the Commissioner to confirm the demand under Section 18. He argued that the goods were released provisionally after the same were seized under the reasonable belief that they were liable for confiscation. The provisional release of goods cannot be treated as provisional assessment of goods. He argued that the stainless steel of 301 and 304 are not significantly different. 5. We have gone through the rival submissions. We find that the primary issue to be decided i....
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.... is further seen that section 28 has been invoked in the show-cause notice while the demand has been confirmed under Section 18 of the Customs Act. It is further noticed that while the imported material is of the grade 301 and 304 the contemporaneous imports price of prime quality stainless steel sheets of 304 has been taken for enhancing the value. The serviceable material has been treated as prime goods. 6. From the above discussion, it is obvious that while the allegation is that the material imported by OIL is serviceable stainless steel sheets of which grade 301 and 304 the same have nowhere been treated as prime material. The material was found under the scrap as neatly strapped and palletised sheet.Scrap is not neatly strapped and p....