Custom, Excise & Service Tax Tribunal
M/S Rathi Steel And Power Ltd vs Commissioner Of Central Excise, ... on 16 January, 2018
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL REGIONAL BENCH : ALLAHABAD COURT No. I APPEAL No. C/480/2011-CU[DB] (Arising out of Order-in-Appeal No. 85-CUS/GZB/2011-12 dated 30/05/2011 passed by Commissioner of Central Excise, Service Tax & Customs (Appeals), Meerut-I) M/s Rathi Steel And Power Ltd. Appellant Vs. Commissioner of Central Excise, Ghaziabad Respondent
Appearance:
Shri Rajesh Chhibber (Advocate) for Appellant Shri Mohd Altaf (Asstt. Commr.) AR for Respondent CORAM: Honble Mr. Ashok Jindal, Member (Judicial) Honble Mr. Anil G. Shakkarwar, Member (Technical) Date of Hearing : 16/01/2018 Date of Decision : 16/01/2018 FINAL ORDER NO. 70310/2018 Per: Ashok Jindal
The appellant is filed the present appeal against the impugned order wherein the value of the imported scrap has been enhanced on the basis of the report submitted by the Chartered Engineer.
2. The brief facts of the case are that the appellant imported some container of Heavy Melting Steel Scrap on the high sea sale basis. They declared the description of the goods as declared in the import documents. On first check, the part of the goods were found S.S. Scrap on the basis of the opinion given by the Chartered Engineer in his report, wherein it was found that out of total quantity of 106.220 MT of HMS scrap, 5.80 MT is of Non-Magnetic Scrap, therefore, the case was booked against the appellant for mis-declaration of imported goods. Consequently, the value of imported goods were enhanced and redemption fine and penalty was imposed. Against the said order the appellant is before us.
3. The learned Counsel for the appellant submits that merely 5% of the total quantity of goods imported by them is not found as per declaration and it is an import of scrap on high sea sale basis, they have declared the goods as per the description, therefore, it cannot be held that appellant has mis-declared the goods. It is further submitted that the report of the Chartered Engineer is not concrete or complete. Therefore, the same cannot be relied upon. He further submitted that they have submitted the certificate of origin wherein the goods are declared as which HMS Scrap. In that circumstances, the enhancement on value and imposition of redemption fine and penalty are not sustainable against the appellant.
4. On the other hand, the learned AR supported the impugned order.
5. Heard the parties, considered the submissions. On perusal of records, we find that out of total quantity of imported scrap 106.22 MT, as per the Chartered Engineers report only 5.80 MT was found stainless steel scrap but the Chartered Engineers report is also inconclusive which shows that it is stainless steel scrap but he also submitted that the goods are required chemical examination to ascertain the correct grade of stainless steel. As the report of the Chartered Engineer is not conclusive, in that circumstances, it cannot be held that the appellant has mis-declared the goods, as appellant was not knowing the contents heaving purchased on high sea sale basis and they have declared the goods as per the import documents. In that circumstances, charge of mis-declaration is not sustainable against the appellant. Moreover, the quantity found not as per description by the Chartered Engineer is less than 5% of the total quantity imported by the appellant, therefore, the value of scrap has been enhanced without any concrete evidence, therefore, the impugned order enhancing the declared value and imposing the redemption fine and penalty on the appellant is not sustainable, therefore, the same is set aside. In these terms the appeal is allowed.
(Dictated and pronounced in Court) (Anil G. Shakkarwar) Member (Technical) (Ashok Jindal) Member (Judicial) Ankit 1 2 APPEAL No. C/480/2011-CU[DB]