TaxTMI 
TaxTMI 
2018 (2) TMI 657
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....ods declared as 15.296 MTs of Copper Scrap, 14.148 MTs of lead Scrap and 8.412 MTs of Insulation Material which had been purchased by them on High Sea Sales basis from M/s.Sterling Steels. The sales contract dt. 25.08.2010 executed between the supplier M/s.Sama Trading & Services W.L.L, Doha, Qatar and M/s.Sterling Steels shows the item description as "Copper Cable Scrap". The Bill of Lading dt. 18.09.2010 also described the item as "Copper Cable Scrap". The consignment was examined by officers from the D.R.I. Chennai and it was found to contain only cut pieces of "High Voltage Electrical Cables" containing several layers, the inner most part being solid lead rod surrounded by six segments of copper wires, each segment consisting of several....
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....nce in the proceedings initiated against the appellants, vide impugned order No.15113/2011 dt. 09.03.2011, the adjudicating authority inter alia, ordered the following : (1) Rejection of description of the imported goods as Copper Scrap, lead Scrap and Insulation Material with classification 74040012, 78020010 and 78020010 claimed by the importer and holding that correct description of goods as "Copper Cable Scrap Druid Grade", classifiable under tariff item 74040019. (2) Confiscation of the imported goods which had been confiscated, however allowing redemption on payment of redemption fine of Rs. 10,00,000/- (3) Ordering for re-export of goods imported under Bill of Entry No.671560 dt.27.10.2010 within two months from the date of rec....
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....orm-9 had been submitted by the international importer M/s.Sterling Steels, who in turn had sold the goods to Lalkamal on High Sea Sales basis. Hence it cannot be said that there was any violation of the Hazardous Wastes Rules committed by the appellant. Form-9 also having been submitted at the time of import, it cannot be alleged that Lalkamal have committed any misdeclaration. iii) The department has alleged that importer did not declare that the goods are Druid and that they have misdeclared as copper scrap, lead scrap and insulation material. Ld. Advocate draws our attention to Schedule IV of the list of Hazardous Wastes requiring Registration for recycling / reprocessing, wherein at Sl.No.7 it has been clearly listed as under :- 7.....
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...., sell these goods to a person who has got registration for Recycling and Reprocessing; that as such, there is no bar for a trader to import insulated copper wire scrapas long as he is able to sell these goods at an actual user after importation; that the process of recycling and reprocessing is hazardous in nature, which is essentially a post import exercise and is regulated under Rule 8 (1) and 9 of Hazardous Wastes (Management, handling and Transboundary Movement) Rules, 2008. v) Thus the importer of the copper cable scrap has not contravened any of the provisions of the Customs Act. Ld. Advocate contended that for this reason, the order of confiscation of the imported goods and imposition of redemption fine thereon, as also imposition....
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....reasons, the confiscation of the goods and the imposition of the penalties is very much justified. 4. Heard both sides and have gone through the facts. 5.1 The main contention of the department is that the imported goods have been misdeclared as copper scrap, lead scrap and insulated material whereas they are actually Copper Wire Scrap with PVC sheathing of Druid grade" which can be imported without a license only by the units registered with the Ministry of Environment and Forests but the importer herein does not possess such license. 5.2 On the other hand, Ld. Advocate has been at pains to contend that the importer was very much registered under the same Hazardous Wastes Rules with TNPCB and that all the requirements of Rules including....
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....r of home consumption even when a law is violated. Redemption fine in a way redeems the violation committed by the importer and paves the way for unencumbered enjoyment of the imported goods thereafter. However, this is not a case where the goods have been cleared for home consumption. This being so, we find merit in the argument of the ld. Advocate in respect of non-imposability of redemption fine when the goods have been ordered for re-export. The redemption fine imposed notwithstanding, is an overkill and will require to be set aside, which we hereby do. So ordered. 5.3 Coming to the matter of penalty, we do note that even though Druid was not specifically mentioned in the Bill of Entry, all the other documents including those required ....