Akshaya Steels Vs Commissioner of Customs (CESTAT Chennai)
CESTAT Chennai held that that the PVC Regrind is a single thermoplastic material and cannot be classified as waste/scrap. Thus, import of PVC Regrind is not restricted under Foreign Trade Policy.
Facts- The issue involved herein is that the consignment was asserted to be PVC Regrind and it is alleged that the importation of which was prohibited/restricted in terms of Public Notice [PN for short] No.392(PN) 92-97 dated 01.01.1997.
After considering the explanation/written submissions filed by the importer, the Original Authority rejected the declared value of imported goods viz. ‘PVC Regrind’ and redetermined the value in terms of Rule 5 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 apart from ordering confiscation of goods and imposing penalties u/s. 112 (a) and Section 114AA of the Customs Act, 1962.
The Commissioner (Appeals) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that even the test report suggested that the PVC Regrind is a single thermoplastic material, itself justifies that the same was not a waste/scrap.
Held that we would thus accept the contentions of the appellant insofar as the bonafide declaration in the Bill of Entry are concerned; we do not find any misdeclaration insofar the import/declaration of PVC Regrind is concerned, since the appellant itself is not responsible for the import of Poppy Seeds, the action of the Original Authority in ordering confiscation and destruction of the same is justified and since the same was part of the same import of PVC Regrind, the only liability on the appellant would be the cost insofar as the destruction of the poppy seeds are concerned. The PVC Regrind imported vide Bill of Entry No.7777460 dated 11.09.2023 deserves to be allowed for home consumption however, subject to the payment of appropriate duty since we agree that there is no violation to any Foreign Trade Policy. Insofar as BE No.8695228 dt. 09.11.2023 [prior Bill of Entry No.8031595 dated 27.09.2023], the PVC Regrind are 23978 Kgs. deserves to be allowed for home consumption on payment of appropriate duty with fine and penalty.
