Custom
TRT-2025-
Cestat Ahmedabad
Date:-04-11-22
In:-
Issue Favourable to Tax Payer ?:-
Order Date: 04 November 2022
Facts:
- The Appellant namely Shree Keshariyaji Metal Impex, is engaged with the manufacturing process of Aluminum Extrusion Scrap.
- A redemption fine of Rs.6 lacs and a penalty of Rs.2 lacs was imposed upon the appellant on the alleged charge of misdeclaration of goods in as much as the appellant has declared the goods as Aluminum Extrusion Scrap as against Aluminum Tread grade as claimed by the department.
- The appellant filed a letter while filing the bill of entry in view of the objection of the Department that they have to use these imported goods for smelting purposes, therefore they sought clearance and cleared the goods by paying duty as demanded by the Department.
- Thereafter, the adjudicating authority adjudicated the matter only with regard to confiscation of the goods on the contention that the appellant has requested for waiver of show cause notice and personal hearing in this case and to decide the case on merit which is rejected by the Commissioner.
- Hence the present appeal.
Issue:
- Whether redemption fine and penalty is rightly imposed?
Order:
- The Tribunal observed that the goods were found attached to a panel board of Aluminum Sheet or fresh tradable goods.
- It is also found that it cannot be conclusively held that the goods are not Aluminum scrap. From the description such as the panel board, it appears that the panel board is made up the article of an aluminum sheet, the panel board cannot be said to be fresh material or an Aluminum sheet.
- It appears that the said goods are used material therefore, the same can be classified as aluminum scrap however the authorities can only draw a prima facie view on the nature of the goods at this stage as the classification of goods attained finality with the assessment of bill of entry and the same was not challenged.
- The authorities find that the redemption fine and penalty imposed by the lower authorities are very excessive and deserve deserves to be reduced, it reduces the redemption fine from Rs.6 lacs to Rs.1 lac and the penalty is reduced from Rs.2 lacs to Rs.35,000.
- The impugned order stands modified to the above extent and appeal is partly allowed.
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