Case Law Details
C C Kandla Vs Indian Iron & Metals Pvt Ltd (CESTAT Ahmedabad)
CESTAT Ahmedabad held that classification under 7204 for ‘used rails’ declared as Heavy Melting Scrap is improper and the product is correctly classifiable under Heading 7302.
Facts- The appellant had filed BOE for clearance of 288.300 MTS of Heavy Melting Scrap (CTH 72044900) declaring an assessable value of Rs. 64,51,916/-. During the first-check examination, it was revealed that the cargo contained 87.350 MTs of Rail Material Scrap (CTH 73021090) with only the remaining 200.950 MTs of HMS. Consequent to the admission of mistake and waiver of their right to SCN by the appellant, adjudicating authority passed the impugned order under which he: (i) rejected the declared value in respect of the 87.350 MTS of Rail Material Scrap and re-determined the same as Rs. 31,36,067/- under Rule 5 of CVR, 2007 (ii) ordered the confiscation of the said goods u/s. 111(d) and 111(m) with redemption fine of Rs. 6 lakhs (iii) imposed penalty of Rs. 2 lakhs u/s. 112(a) and (iv) ordered payment of duty and penalty u/s. 125(2).
Commissioner (A) decided the matter in favour of the party. Being aggrieved, the department has preferred the present appeal.
Conclusion-Hon’ble Supreme Court in the case of Commissioner of Customs (sea port-import), Chennai vs. Indo Deutsche Trade Links held that classification under 7204 for “used rails” declared as Heavy Melting Scrap on importation was improper and product was correctly classifiable under Heading 7302, when assessee itself in a letter to department admitted mis-declaring imported cut Rails as heavy melting scrap and requested for condonation of misdeclaration and admitted value declared to be under lower side and accepted its value for rectification.
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