TaxTMI 
TaxTMI 
2017 (8) TMI 501
X X X X Extracts X X X X
X X X X Extracts X X X X
....ra 3 supra shall also be mutilated, in case the same can be used as such or with some modification. (iv) The importer shall furnish a bond equal to the re-determined assessable value i.e. Rs. 1,36,20,117/- of the seized goods to bind himself to pay in case of demand the differential duty, fine, penalty or interest as may be leviable on such goods, if these are held to be other than scrap, subsequently. (v) In case the importer accepts the provisional release, he shall furnish an undertaking that the quantity and description of the goods and the chartered engineers report shall not be disputed subsequent to release of the goods when they shall no more be available for re-examination. 2. The facts of the case are that the appellant filed Bills of entry Nos.7169000 & 7169989 both dated 20.10.2016 and Bills of entry nos.7173984, 7174140 & 7174137 all dated 21.10.2016 for import clearance of 286.282 MT of 'HMS/Re-Rollable' scrap falling under Tariff item 72044900 of the Customs Act. The goods were examined in presence of the authorized representative of the appellant and Shr. Rajesh John, Chartered Engineer gave the report and the same has been tabulated below: Sl.no....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gs were based on visual examination, failure to produce the Mill Test Certificate. The said findings are based merely on the visual examination and the utilization of the material after cutting and punching as opined by the Chartered Engineer is not supported by any kind of market enquiry, moreover the material was never tested from any Government Laboratory. He further submits that the material cannot be regarded as Secondary & Defective since it is not of standard length and breadth. The material having been removed from Transformers and other Electricals appliances is scrap since it does not possess any magnetic properties and can only be used for the purpose of extracting iron content after melting of the same. Mere, physical condition cannot be regarded to reject the declared classification and mutilation of the said material is itself bad, since the observations and findings are contradictory, without any basis or technical data furnished by incompetent person who is not a metallurgical engineer. He further submits that declaration made in the imported documents have also not been rejected, or contradicted by the respondent despite the fact that the investigation has complete....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rtered Engineer had observed that the material is obtained from old and used transformers. It is pertinent to mention that the material is to be classified as scrap and the provisional release order for mutilation is bad. He prayed that in the terms of the above arguments, the impugned order is to be modified. 4. On the other hand, the Ld. AR submits that in their own case with regard to other bills of entry, the appellant filed the peition before the Hon'ble High Court of Punjab and Haryana in civil writ petition no. 16721/2016 (O&M), wherein the appellant, itself sought mutilation of goods for provisional release, therefore, the goods are to be mutilated before release. 5. Heard the parties and considered the submissions. 6. I have gone through the Chartered Engineer report which is on record. As per the report of Chartered Engineer each bills of entry are dealt separately. With regard of bills of entry No. 7174137 dated 21.10.2016: With regard to the Container Nos. GESU2193460 & MSCU2100279 it has held that the same to be CRGO sheet cutting melting scrap, therefore, the goods are not required to be melted which has not been disputed by the adjudicating authority. Wit....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... as defective CRGO sheets as held by the Commissioner. We find that it is not disputed that these consignments have emanated by dismantling of old used transformers which are scrap. As already held by the Tribunal, in the case of M/s. Ansun System Consulting Pvt. Ltd. (cited supra), the materials obtained from dismantled transformers cannot be treated as defective CRGO sheets. Therefore, we do not find any misdeclaration of description by the Appellant in respect of the present consignments. Having held so, the question of applying higher value based on DOV data applicable to defective CRGO sheets also does not arise. Since we are accepting that there is no misdeclaration of description of the goods, the question of requirement of licence as applicable for import of defective CRGO sheets also does not arise. In view of the above we are unable to uphold the order of the Commissioner in enhancing the value, in confiscating the goods for want of requisite licence and in imposing penalty." In view of the above decisions, I hold that the scrap material obtained from old and used dismantled different capacity, therefore, it is scrap only, the same is not required to be mutilated. With ....