2018 (5) TMI 687 – CESTAT NEW DELHI – TMI – Mis-declaration of imported goods – allegation in the present case is that the appellant has declared the imported goods as ‘Alloy Steel Melting Scrap’. But amidst the declared melting scrap, the examination by Customs Officers revealed that ‘Grinding Media Balls’ were found which were new and unused – Held that: – for purposes of assessment of imported goods, the examination of goods at the port in India is more relevant. Hence, we are inclined to give more credence to the opinion of the experts obtained locally. The three experts commissioned by Customs has unanimously opined that the impugned goods were new ‘Grinding Media Balls’. Sh. I.P.S. Arora, Chartered Engineer who has originally given a contrary opinion, has during cross-examination, retracted his original view.
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The order passed by the lower authority, who has gone by the majority of the opinions, merits no interference.
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Appeal dismissed – decided against appellant. – C
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cation as grinding media balls under Customs Tariff item 73259100/ 7326 1100 which attracted the higher rate of duty. 3. The Customs Department proceeded to investigate a case of alleged mis-declaration. Three samples were drawn of the goods said to be Grinding Media Bills and the opinion of following experts were taken by Customs. (i) Sh. P. C. Sanghi, Chartered Engineer (ii) Sh. Virendra Kumar Gupta, Production Manager M/s Vaibhav Meta Cast Pvt. Ltd., (iii) Sh. B. K. Sharma, Associate General Manager M/s Hindustan Zinc Limited The experts opined that the samples were of Grinding Media Balls – new and unused. 4. Examination of the samples by Chemical Examiner, CRCL, Government of India resulted in the opinion that the fact whether such goods were used or not cannot be ascertained by chemical test. Sample of the goods sent to National Test House, Government of India begot the opinion that the grinding balls imported were not as per IS Standard in terms of hardness and chemical composit
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ue was remanded to the Commissioner (Appeals) for denovo decision after allowing the cross examination of the experts on whose reports Revenue was relying. The present impugned order was passed by the Commissioner (Appeals) in the denovo proceedings in which the Order-in-Original was restored. Aggrieved by the impugned order, the present appeals have been filed. 8. With the above background, we heard Ms. Nupur Maheshwari, ld. Advocate for the appellant and Sh. Rakesh Kumar, ld. AR representing Revenue. 9. The arguments advanced on behalf of the appellant are summarised below: (i) The imported consignment was accompanied by Pre- Inspection Report by an agency at the port of origin in which it stands certified that the imported goods are alloy steel melting scrap. Since the inspecting agency is approved by the DGFT, such certificate is to be accepted. (ii) The report issued by the CRCL has stated that the fact whether the imported goods were new or old cannot be ascertained by chemical a
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at the instance of the appellant has also retracted his original statement and his cross-examination has confirmed that the samples were new and unused grinding balls. 11. Ld. AR further argued that the new grinding balls were cancealed within the consignment of melting scrap. This evidently substantiates the charge of mis-declaration. Further, keeping in view of the fact that the importer is also engaged in the manufacture of grinding balls, he argued that the impugned goods were new and meant to be sold in India. 12. We have heard both sides at length and carefully gone through the appeal record. 13. The allegation in the present case is that the appellant has declared the imported goods as Alloy Steel Melting Scrap . But amidst the declared melting scrap, the examination by Customs Officers revealed that Grinding Media Balls were found which were new and unused. Such balls can also be considered as scrap only if they were new and old. 14. The proceedings before the lower authorities
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nt. Hence, we are inclined to give more credence to the opinion of the experts obtained locally. The three experts commissioned by Customs has unanimously opined that the impugned goods were new Grinding Media Balls . Sh. I.P.S. Arora, Chartered Engineer who has originally given a contrary opinion, has during cross-examination, retracted his original view. In the above scenario, we are of the view that the order passed by the lower authority, who has gone by the majority of the opinions, merits no interference. His views are quoted below with our approval. In light of the facts as mentioned above available on records as discussed in point no. (A) to (H) above I find that for classifying the goods under above heading there is no precondition of fulfilment of condition of specification as per IS standard. As well as in all the report of experts, every expert including National Test House, CRCL, independent expert, chartered engineer have accepted that goods in questions are Grinding Medi
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ndition of IS specification, end use of the goods etc. In the panchnama dated 20.11.2013 it is also described that old and used grinding media balls which cannot be used as Grinding Media Balls already not included in the quality of seized goods. I therefore, uphold the findings of the Adjudicating Authority regarding classification of goods in question. 12. The appellant has declared the goods in their documents submitted to the department at the time of importation classified the same as Alloy Melting Scrap falling under Chapter 72042990 of the Customs Tariff Act, 1962. As discussed in the previous para it is clear that the classification of the goods i.e. Grinding Media Balls 53.240 MT falling under Chapter 7325 of the Customs Tariff Act, 1962 as determined by the department after investigation of the case. Therefore, after investigation, the fact of the mis-declaration of classification of goods in question was detected. Once, the mis-declaration of classification of goods was sust
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