TaxTMI 
TaxTMI 
2022 (1) TMI 220
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....ated 28.4.2021 (2 nos), 6.4.2021, and 12.5.2021 for clearance of the imported goods. The details of the goods declared as per import documents are as under: Sr. No. Bill of Entry No. & date Container No. Commodity declared in Bill of Entry Total Weight (in MT) Rate (USD) per MT Total Value (USD) 1 3743347 dated 28.04.2021 BAXU2661023 BAXU2680173 Heavy Melting Scrap ISRI Code 200 to 206 31.66 300 9498.0 2 3461412 dated 08.04.2021 AKLU6013550 BLZU2081197 MCLU1000033 QCLU2230610 QCLU2230950 XINU1542774 Heavy Melting Scrap ISRI Code 200 to 206 160.75 300 48223.5 3 3743346 dated 28.04.2021 IAAU2680025 Heavy Melting Scrap ISRI Code 200 to 206 28 300 8400.0 4 3921658 dated 12.05.2021 CMAU1569439 CPIU8238256 GATU1181242 TSAU2701357 Heavy Melting Scrap ISRI Code 200 to 206 95.15 300 28545.0 4. On examination of the goods it appeared that the importer had misdeclared the goods and the summary of the examination is as under:- Sr. No. Bill of Entry No. & date Container No. Examination/Observation of the DRI officer 1 3743347 dated 28.04.2021 BAXU2661023 Examination done vide Panchnama dated 07.05.2021, 21.05.2021 & 24.05.2021. The imported goods appe....
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....ve/old and used CRGO sheets, strips and coalis not permitted. The Technical Division, Ministry of Steel has issued an OM dated 13.10.2020 with regard to import of substandard and used oily CRGO laminations into the country. 7. Again, as per the Explosives Act, 1884 r/w the Gas Cylinder Rules 2016, no person shall import any gas cylinders filled or intended to be filled with any compressed gas except under and in accordance with the conditions of license granted under the Foreign Trade (Development & Regulation) Act, 1992. 8. The goods were examined by a Chartered Engineer and in his report dated 4.6.2021, it was stated as under: DESCRIPTION OF GOODS DECLARED QTY In Kgs ASCERTAINED QTY In Kgs SUGGESTD CIF PRICE/MT Old & used Cylinders -------------- 20786 Kg USD 350/MT New Tennis Bat ------------- 13544 Pcs (3425 Kgs) INR 50/PC Heavy Melting Scrap 31660 Kgs 6929 Kgs USD 300/MT Total Weight 31660 Kgs 31140 Kgs 9. As it appeared to the Revenue that, importer attempted to import old and used CRGO sheets and old and used gas cylinder without license and also misdeclaring them; attempted to clear Table Tennis rackets clandestinely to evade customs duty, the ....
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....t were imported from UAE. The goods declared as HMS were accompanied by documents in the nature of invoice, packing list, Bill of lading and pre-inspection certificate. The goods were examined by the pre-inspection agency duly authorized by the Director General of Foreign Trade, who after examining the goods had certified the goods as "Heavy Melting Scrap‟. On arrival of the goods, the appellant filed Bill of Entries for clearance of the goods on the basis of these documents. After examination, the goods were detained holding that the goods are old and used CRGO sheets and old and used empty cylinders. 15. The ld. Counsel submitted that the Revenue did not obtain any expert opinion as to the nature of the goods. The goods were seized on the belief formed by mere visual examination of the goods. The officers have not send any sample for testing to a BIS laboratory or any other Government laboratory to ascertain the composition of the imported goods. 16. The Revenue has erred in holding the goods as "prohibited goods‟ as there are basically scrap and imported for the purpose of melting only. The provisions of the Gas Cylinder Rules are not attracted as these goods in th....
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.... Counsel submitted that the goods are lying detained at the port of ICD CONCOR, Ludhiana and the importer is incurring huge ground rent charges. It has put him to huge financial loss. He prayed that the appeal may be allowed. 22. The Ld. AR Ms. Swati Chopra appeared and argued for the Revenue. She submitted that the Commissioner (Appeals) has erred in allowing provisional release of the CRGO sheet, which are prohibited goods in terms of CBE‟S instruction dated 9.7.2014 issued under F.No. 450/1/2014 Cus IV. It is categorically mentioned therein that the import of second/defective/old and used CRGO sheet, strips and coil in shape and size are not permitted. The importer has attempted to import these goods misdeclaring them as "Heavy Melting Scrap ISRI 200-206 .With regard to the release of old and used empty gas cylinders of various sizes, she submitted that the import of such cylinders are prohibited under the Explosive Act, 1884 r/w Gas Cylinder Rule 2016. These Rules state that no person shall import any gas cylinder filled or intended to be filled with any compressed gas except in accordance with the conditions of license. The importer had not obtained any prior approval f....
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....d and rendered as scrap before allowing to be redeemed by the importer therein. 26. The Commissioner (Appeals) has thus directed to subject the impugned goods to mutilation before release of the same .When similar import declared as HMS and reclassified and reassessed as CRGO sheets were ordered to be released after mutilation and payment of duty, we do not find any reason to interfere with the view taken by the Commissioner (Appeals) directing provisional release of the impugned goods. 27. Coming to the issue of import of goods in the nature of old and used gas cylinders, the main objection raised by Revenue is that the Gas Cylinder Rules prohibit import of gas cylinders which are filled or intended to be filled with any compressed gas. Here again, the Commissioner (Appeals) has ordered for mutilation of these goods so as to render them as scrap. On such score, the contention raised by the Revenue adverting to Gas Cylinder Rules and Explosives Act is without any basis. We therefore hold that the view taken by the Commissioner (Appeals) to allow provisional release of the goods is legal and proper. 28. The next question would then be as to the legality and propriety of the condi....