Hansco Iron and Steel Pvt. Ltd Vs Commissioner of Customs (CESTAT Chandigarh)
The appeal concerns the challenge raised by the appellants against an order dated 14.06.2018, limited to the imposition of redemption fine and penalty. The appellants had imported 135.840 MT of Heavy Melting Scrap under a Bill of Entry dated 14.10.2015 and opted for first check examination. When asked by the Department, they agreed to increase the declared value from USD 264 PMT to USD 275 PMT, and duty was paid accordingly. Based on examination conducted with the assistance of a Chartered Engineer, the Revenue concluded that 90% of the consignment comprised re-rollable material scrap, with a total weight of 135.810 MT, and assessed the value at USD 330 PMT. The adjudicating authority imposed a redemption fine of Rs. 1,50,000 and a penalty of Rs. 50,000. The Commissioner (Appeals) upheld this decision.
Before the Tribunal, the appellants argued that there had been no mis-declaration. They submitted that the description was based on documents provided by the foreign exporter and that they accepted the Chartered Engineer’s value only to facilitate clearance of the goods. They contended that the Chartered Engineer’s report was arbitrary, based solely on estimates without sampling, and could not justify the imposition of redemption fine or penalty. They further asserted that there was no mens rea, relying on a cited decision.
