Page 202 - ELT_15th May 2020_VOL 372_Part 4th

592 EXCISE LAW TIMES [ Vol. 372

REPRESENTED BY : None, for the Appellant.
Shri S.N. Gohil, Superintendent (AR), for the
Respondent.
[Order per : Ramesh Nair, Member (J)]. - The brief facts of the case are
that the appellant M/s. Hans Industries Pvt. Ltd. filed a Bill of Entry No. 270176,
dated 29-12-2008 through their Customs House Agent for clearance of 126.085
Metric Tons & imported LMS Bundles and Heavy Melting Scrap having assessa-
ble value of Rs. 17,42,202.17. They classified the goods under CTH 7204 49 00 of
the Customs Tariff Act, 1975 claiming nil rate of basic customs duty. During the
course of examination of the said goods it was found that the said imported car-
go contained 58.280 Metric Tons “HR Side Cut Trimmings” mixed with 67.805
Metric Tons of LMS Bundles and Heavy Melting Scrap.
2. The case of the department is that as per Customs Tariff, “HR Side
Cut Trimmings” are classifiable under CTH 7204 41 00 which specifically applies
to “Trimmings, Savings, Clips, Milling Waste, Saw Dust, Filing, Trimmings and
Stampings whether or not in Bundles”. The goods falling under the said CTH
7204 41 00 are chargeable to BCD @ 5%. On the other hand HMS falling under
Customs Tariff Heading 7204 49 00 is chargeable nil rate of BCD. Thus the im-
porter has misdeclared the description of the consignment in order to evade the
applicable Basic Customs Duty. It was also alleged that due to misdeclaration the
value was also wrongly declared, therefore the transaction value for the subject
goods is also liable for rejection. Accordingly, it was proposed the value of im-
ported goods should be USD 475 CIF PMT as against declared value of @ US $
270/- PMT, on the basis of contemporaneous import price of “HR Side Trim-
mings”. A show cause notice was issued, wherein it was proposed to confiscate
the alleged misdeclared goods of 58.280 metric tons “HR Side Cut Trimmings”,
to impose penalty under Section 112(a) of the Customs Act, 1962 and to reassess
the misdeclared goods i.e. 58.280 Mts. on the rate of 475 USD per Metric Tons.
The adjudicating authority confirmed the charges proposed in the show cause
notice and imposed the fine of Rs. 4 lakhs penalty of Rs. 2 lakhs and ordered for
reassessment @ 475 USD PMT. Being aggrieved by the order of the adjudicating
authority the appellant filed appeal before the Commissioner (Appeals), who
except modification in redemption fine and penalty reducing fine to Rs. 3 lakhs
and penalty to Rs. 1,50,000/-, rejected the appeal, therefore the present appeal.
3. None appeared on behalf of the appellant.
4. Shri S.N. Gohil, Learned Superintendent (AR) appearing on behalf of
the Revenue reiterates the finding of the impugned order. He submits that “HR
Side cutting” is clearly covered under CTH 7204 41 00 and leviable to Basic Cus-
toms Duty @ 5%. Therefore, the appellant have clearly misdeclared the goods
under 7204 49 00 with intention to evade Customs Duty. Therefore the goods
were rightly confiscated. He relied upon the following judgments.
• 2018 (363) E.L.T. 708 (Tri. - Chan.) - C.G. Steel Rolling Mills v. CCE,
Ludhiana
• 2009 (242) E.L.T. 227 (Tri. - Del.) - Natwar Steel P. Ltd. v. CC, New
Delhi
• 2002 (144) E.L.T. 574 (Tri. - Mum.) - CC, Mumbai v. Multimetal Ltd.
• 2003 (151) E.L.T. A309 - Multimetals Ltd. v. Commissioner

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