TaxTMI 
TaxTMI 
2004 (9) TMI 188
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...., the consignment was examined and it was found that part of the goods imported in the containers were Stainless Steel Sheets/Coils/Strips concealed in the hollow portion of the packages, covered by genuine S.S. Scrap. On Segregating the imported goods and detailed examination thereof, it appeared to the department that the goods were misdeclared and undervalued. Therefore, the entire consignment totally weighing 39.280 MTs along with 2 Marine containers worth Rs. 26,06,582/- were placed under seizure dated 15-11-2000. Representative samples were drawn and send for Chemical Test. Test result dated 30-11-2000 from Custom House, Kandla confirmed that goods to be S.S. Sheets/Coils/Strips etc. having thickness of 4.76 mm as per ASTM 666-79 Stan....
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....ith and Custom duty of S.S. Scrap was to be recovered along with interest by the under Section 28AB at appropriate rate. He also ordered a penalty of Rs. 12,27,062/- on the importer u/s. 112 read with Section 114A and a penalty of Rs. 1,00,000/- on Shri Prakash Rajmal Mehta, partner of the Importer firm under Section 112 of the Customs Act. A penalty of Rs. 10,000/- on Mr. C.J. Joshi & Sons, CHA, Gandhidham under Section 112 was also imposed. Hence, these appeals by the importer and the Director. 2. After hearing both sides and considering the matter, it is found that -(a) There is no doubt about the finding of certain goods to be in form of S.S Sheets/Coils/Strips. The declaration on the subject Bills of Entry was "S.S. Scrap grade 301 ....
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....had forcibly pulled out which explains presence of scratches on the surfaces of the coil up to its interiors. (1) This report of Technical examination, certifies the samples to be giving fracture which was brittle etc. The conclusion were (i) The drawn samples of steel conform to AISI 304 Grade. (ii) The drawn sample have poor tensile strength and have very long elongation and their fracture was brittle. This findings make them, unsuitable for any application. The consignment inspected mostly consisted of so to say shredded steel sheets (iii) As the drawn samples are brittle, they cannot be us....
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....d. DR on the case of Northern India Steel Rolling Mills Ltd., 2003 (162) E.L.T. 507 (Tri. - Del.)'will not help to assist the case of Revenue. In that case, it was found that goods were fresh iron and steel rods, which were declared as Steel Scrap. In the present case, Ld. IIT Professor report which was the only expert opinion on record, very clearly and categorically established that the steel sheet were damaged and not usable sheets for any other purpose. Thus they conform to the definition of scrap. The definition of wastes and scrap is very clear. The fact that the samples are brittle which indicate that the consignment imported cannot be put to any other use, than for melting. (d) Ld. DR has relied upon the case of Supreme Court in ....