Custom Appeal No. 195/LB of 2002, decided on 30th April, 2002. Versus Custom Appeal No. 195/LB of 2002, decided on 30th April, 2002.

MIAN ABDUL QAYYUM, MEMBER (JUDICIAL).‑--- This appeal is directed against the Order ‑in‑Original No.85 of 2002, dated 29‑1‑2002 passed by the learned Deputy Collector (Adjudication), Gujranwala.

2. The facts leading to this appeal are that the appellants imported a consignment declaring Iron Steel Scrap and sought its clearance vide Bill of Entry No.2393, dated 25‑6‑2001. Physical examination of the goods revealed that the consignment comprised of old and used Auto Parts of vehicles of Chapter 87 falling in the negative list of the Current Import Policy Order 2000-2001 vide appendix "C" being used auto parts. Mr. Muhammad Anwar Cheema appeared on behalf of the appellants on 28‑1‑2002 before the learned Adjudicating Officer and requested for summary, adjudication. He also requested that the goods may be released against payment of leviable duty and taxes. The learned Adjudicating Officer however, declined the request of the appellant for release of the goods and passed an order confiscating the same in view of provisions of S.R.O. 1374(I)/98, dated 17‑12‑1998 without allowing any option for their redemption.

3. Learned counsel for the appellant on 25‑4‑2002 while relying on S.R.O. No.1374(I)/98, dated 17‑12‑1998 requested for release of the confiscated goods subject to payment of duty and taxes on the condition that the same may be deshaped so as to make this scrap at the expense of the appellant.

4. The learned D.R. requested for a short adjournment to obtain instructions from the department. The hearing was accordingly adjourned to 30‑4‑2002.

5. Today, the learned D.R. stated that he had studied the relevant S.R.O. 1374(I)/98, dated 17‑12‑1998 and had no objection if the confiscated goods were released to its legitimate owner on payment of leviable duty and taxes subject to the condition that they would be cut into pieces or deshaped as per conditions of the said S.R.O. The relevant provision relied upon by learned counsel for the appellant reads as under:‑‑

"S. No. Goods Extent of redemption fine on the ascertained value.

1

2

3

8.

Imported scrap items which contain old and used or serviceable components such as auto parts and compressors etc. If the same are allowed release after Cutting, pressing, piercing, breaking or otherwise deshaping to the satisfaction of the Customs Authorities‑on specific request of the importers subject to the conditions that expense incurred on such processes are paid by the importer.

Nil

6. Keeping in view the specific request of learned counsel for the appellant, the concession made by the learned D.R. and following the relevant provision of S.R.O. No.1374(I)/98, dated 17‑12‑1998, we set aside the impugned order and direct release of, the confiscated goods to their lawful owners on payment of leviable duty and taxes subject to the A condition that these goods will be cut into pieces/deshaped according to requirements of the said S.R.O. at the expense of the appellant before their release.

C.M.A./709/Tax(Trib.) Order accordingly.