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2018-VIL-332-CESTAT-MUM-CU

CUSTOMS CESTAT Case

Customs - Assessee imported of railway scrap consisting of axles equivalent to heavy melting scrap declaring the classification under Customs Tariff heading 7302990 – Department view that since the railway axles can be serviced and reused for the manufacture of other components, same is classifiable under CTH 86071910 – enhancement in value and with order for confiscation of the goods on a redemption fine – HELD - the Chartered Engineer nowhere disputed about the description of the goods declared by the appellant and more or less he agreed that the description was made correctly in the Bill of Entry. The Chartered Engineer also opined that the imported goods can either be used for melting purposes. Therefore, the goods declared as heavy melting scrap is not incorrect. It is also clear that the railway scrap consisting of axles cannot be used as axles. The same can be used only as a melting scrap or by turning, cutting and grinding. Therefore, the goods cannot be used as such. Therefore, there is no basis for making allegation against the appellant regarding the misdeclaration of the goods and the goods imported does not fall under the restricted category. Therefore, the same is not liable for confiscation. As regards the enhancement of the value, the apprehension of the Revenue is that since the goods is not melting scrap but secondhand axles, therefore, presumably the value was enhanced. There is no material such as contemporaneous import of the like goods was relied upon. Therefore, the enhancement of the value is arbitrary and cannot be accepted - the impugned order is set aside and the appeal is allowed

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