Case Law Details
Shree Keshariyaji Metal Impex Vs C.C. (CESTAT Ahmedabad)
CESTAT find that as regard the classification of goods that whether the same is Aluminium Scrap or Aluminium Sheet, the assessment was made on the basis of the department’s claim and the appellant have paid the duty. The said assessment was not challenged by the appellant therefore at this stage, the classification cannot be conclusively decided. However, for the purpose of redemption fine and penalty, a prima facie view has to be taken on the nature of goods. On going through the records, we find that the adjudicating authority in the Order-In-Original stated the inspection report as under:-
“Inspected the container nos. & verified seal nos. seals found intact. Opened & examined goods 100% under supervision of Supdt. (DE) & AC (DE) in presence of representative of CHA Shri Amit. The goods declared as aluminium extrusions scrap (tread) as per ISRI. On verification the goods found as Aluminium Tread Grade and attached Panel board is of Aluminium Sheet. Checked the description. Verified that no other item/explosives/war material found mixed with the lot. Weight found as 27.790 MTs. as per weigh bridge of CWC/CFS-II, Kandla followed Cir.No.56/04 as amended by 60/04.”
From the above inspection report, it is observed that the goods was found attached with panel board of Aluminium Sheet or the fresh tradable goods. In this fact, we find that it cannot be conclusively held that the goods are not Aluminium scrap. From the description such as panel board, it appears that the panel board is made up article of aluminium sheet, the panel board cannot be said to be fresh material or Aluminium sheet. It appears that the said goods is used material therefore, the same can be classified as aluminium scrap however, we can only draw a prima facie view on the nature of the goods at this stage as the classification of goods attained finality with the assessment of bill of entry and the same was not challenged. However, considering the prima facie view about the goods and in the facts and circumstances of the present case, we are of the view that the redemption fine and penalty imposed by the lower authorities are very excessive and the same deserves to be reduced. Accordingly, we reduce the redemption fine from Rs.6 lacs to Rs.1 lac and penalty is reduced from Rs.2 lacs to Rs.35,000.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
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