Case Law Details
M/s. Regal Alloys Pvt. Limited Vs Commissioner of Customs (Cestat Chandigarh)
Admittedly the consignment was purchased by the appellant on high see sale basis and all the documents describe the goods as Heavy Melting scrap. The appellant have placed on record the invoices, packing list as also the pre-shipment inspection certificate issued by Geo Chem as also the bill of lading, describing the goods as Heavy Melting scrap. In such a scenario, to attribute any motive to the appellant to mis-declare the goods is neither warranted nor justified, inasmuch as the appellant would not be knowing the contents of the containers. As such, any imposition of penalty upon them is not justifiable.
As regards confiscation of the goods, we note that the appellant had taken a categorical stand that re-rollable material is not usable as such and was in the nature of waste and scrap only. It is seen that the adjudicating authority has also classified the same under the heading which is of waste and scrap. As the entire documents show the consignment to be a Heavy Melting scrap, the presence of re-rollable material will not convert the consignment from Heavy Melting scrap to re-rollable materials. The bill of lading issued by the foreign supplier along with pre-shipment certificate, the packing list and invoice raised by the foreign supplier, indicate that the goods sent by them are only Heavy Melting scrap. In such a scenario, the confiscation of the goods is not called for. Reference can be made to the Tribunal decision in the case of Kuber Casting Pvt. Limited vs. CC, Amritsar – 2016 (339) ELT 264 (Tri. Chennai), wherein, in identical situation, the confiscation of the goods was set-aside by observing that the order was placed for Heavy Melting scrap only and the foreign supplier has sent Heavy Melting scrap only, the presence of re-rollable scrap will not convert the consignment into anything other than Heavy Melting scrap, thus justifying confiscation of the same.
FULL TEXT OF THE CESTAT ORDER IS AS FOLLOWS:-
All the three appeals are arising out of the same impugned order passed by the Commissioner (Appeals) and as such, are being disposed of by a common order.
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