Custom, Excise & Service Tax Tribunal
M/S.S.K.Enterprises vs Cc, Ghaziabad on 27 June, 2014
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, NEW DELHI COURT NO. III SINGLE MEMBER BENCH Appeal No. C/587/2011 (Arising out of OIA No.138-Cus/GZb/2011-12 dt.20.7.2011 passed by CCE (Appeals), Ghaziabad) M/s.S.K.Enterprises Appellants Vs. CC, Ghaziabad Respondent
Appearance:
Ms.Reena Rawat, Advocate for the Appellants Shri R.K.Mishra, DR for the Respondent CORAM:
Hon'ble Mr. Manmohan Singh, Member (Technical) Date of Hearing/decision: 27.06.2014 FINAL ORDER No.52647/2014 Per MANMOHAN SINGH:
Ms.Reena Rawat, ld.Advocate appeared on behalf of the appellant and Shri R.k.Mishra, ld.DR for the department.
2. Appellant have come up in appeal against OIA No.138-Cus/GZb/2011-12 dt.20.7.2011 passed by Commissioner (Appeals), Ghaziabad wherein Commissioner (Appeals) has modified the Order-in-Original and reduced redemption fine from Rs.15,34,000/- to Rs.11,00,000/- and also reduced penalty from Rs.7,67,000/- to Rs.5,00,000/-.
3. The brief facts of the case are that the appellants filed a Bill of Entry dated 8.2.2011 for the clearance of goods declared as Shredded Brass Scrap Honey. On examination, consignment was found to contain 22.634 MTs of Brass, 18.004 MTs of copper, 7.717 MTs of steel and 3.086 MTs of aluminum + zinc instead of 51.440 MTs of Brass scrap declared in Bill of Entry. On examination, it was observed that the consignment declared as Shredded Brass Scrap Honey contained a large portion of Copper Scrap which constituted approximately 35% of total consignment. Total assessable value of these goods as declared by the importer was Rs.1,02,85,654/-. The said goods were reportedly purchased by them from the importer namely M/s.Dwarkesh Alloys (P) Ltd., Delhi on the high sea sale basis.
4. In view of alleged mis-declaration, the Customs officers confiscated the said goods under section 111 9d) and 1119m) of the Customs Act, 1962. In this regard, the appellants waived the requirement of the show cause notice. In the above matter of the alleged mis-declaration of the goods, the Customs Authorities imposed redemption fine of Rs.15,34,000/- (in lieu of confiscation of the goods) and penalty of Rs.7,67,000/- upon the appellants. The said confiscation and assessment of the goods on the enhanced value was followed by the order dated 23.3.2011 ibid of the adjudicating authority.
5. Appellant have pointed out that this is high sea sale purchase and they were not aware about the contents of the container because they were given to understand that the declaration was made to Shredded bras scrap honey.
6. On the other hand, ld.DR pointed out that in the Order-in-Original, it is clearly stated that though they have declared 51.440 MTs of Brass scrap but actually found to contain 22.634 MTs of Brass, 18.004 MTs of copper, 7.716 MTs of Steel and 3.086 MTs of Aluminium + Zinc.
7. Ld.Counsel is not able to explain as to how large percentage of copper scrap would have been declared at price of brass scarp even when the sale is on high sea sale basis. It is the duty of the importer to ensure that whatever materials are being purchased on high sea sale basis or otherwise, contents of the material has to be declared proper and this is known fact that no one will sell brass at the price of copper metal which is higher in value.
8. I am not able to convince myself regarding grant of benefit of doubt or mis-representation on the part of seller at high sea sale. This is an open and shut case of clear misdeclaration with intent to evade customs duty. Commissioner (Appeals) has already allowed benefit of reduction in redemption fine from Rs.15,34,000/- to Rs.11,00,000/- resulting that RFs is merely 9.3% of the value. Personal penalty has also been reduced from Rs.7,67,000/- to Rs.5,00,000/-. I do not find any new ground to interfere with the order of the Commissioner (Appeals). Accordingly7 appeal of the appellant is rejected.
(dictated & Pronounced in the open court)
(Manmohan Singh) Member(Technical)
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