CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL CHANDIGARH REGIONAL BENCH - COURT NO. I Customs Appeal No. 61289 of 2018 [Arising out of Order-in-Appeal No. ASR-CUSTM-PRV-APP-26-29-15-16 dated 28.05.2015 passed by the Commissioner (Appeals), Customs and Central Excise, Chandigarh]

M/s Aggarwal Steel Centre ……Appellant Godown No.6, Back side Bhambri Kanda, Amloh Road, Mandi, Gobindgarh, Punjab - 147301 VERSUS Commissioner of Customs, Ludhiana ……Respondent GRFL, G.T. Road, Sahnewal, Ludhiana, Punjab - 141120 WITH

2. Customs Appeal No. 61290 of 2018 [M/s Aggarwal Steel Centre]

3. Customs Appeal No. 61912 of 2018 [M/s Aggarwal Steel Centre]

4. Customs Appeal No. 61913 of 2018 [M/s Aggarwal Steel Centre]

[All Arising out of Order-in-Appeal No. ASR-CUSTM-PRV-APP-26-29-15-16 dated 28.05.2015 passed by the Commissioner (Appeals), Customs and Central Excise, Chandigarh]

APPEARANCE:

Shri Saurabh Kapoor and Ms. Tanya Kumar, Advocates for the Appellant Shri Anurag Kumar, Authorized Representative for the Respondent CORAM: HON’BLE MR. S. S. GARG, MEMBER (JUDICIAL) HON’BLE MR. P. ANJANI KUMAR, MEMBER (TECHNICAL)

FINAL ORDER NO. 60228-60231/2026 DATE OF HEARING: 19.02.2026 DATE OF DECISION: 09.03.2026 P. ANJANI KUMAR:

M/s Aggarwal Steel Centre, the Appellants, assail the order, dated 28.05.2015, passed by commissioner of Customs (Appeals).

2. Briefly stated the facts of the case are that the appellants filed a Bill of Entry No. 2764221 dated 20.07.2013 for clearance of 215.370 MT of goods declared as ―Heavy Melting Scrap‖ (HMS) under CTH 72044900. They purchased goods on high sea sale basis from M/s Aggarwal Ispat Udyog, who had imported the same from M/s Najed Liltedweer LLC, Oman, at a declared unit price of USD 360 PMT. On examination by the officers of Shed on 13.08.2013 it was found that all 8x20 containers contained old and used defective pipes having different length and diameter; weight was marginally high at 215.970 MT. The services of Shri Varun Chandok, a chartered Engineer, were commissioned to inspect the cargo. Vide his report, dated 19.08.2013, the chartered Engineer opined that:

 The goods comprised mainly of Old & Used pipe cuttings having thickness of approx. 6mm and diameter of approx. 3‖, 4‖ and of varying lengths approx. 14 feet to 17 feet.

 The said pipes have been dismantled from a place of working and flame cut in assorted lengths.

 The said pipes are usually discarded for certain safety measures and are unfit for original use.

 The said pipes are below standard lengths and the marketability depends upon market requirements.

2.1. On completion of examination of the consignment in question, it appeared to the Revenue that the consignments contained old and used pipes, re-rollable material and Heavy Melting Scrap (HMS); import of old and used pipes is prohibited as per Para 2.17 of Foreign Trade Policy and thus, part of the material i.e. old and used pipes and re-rollable material, which was mis-declared as HMS are rendered liable for confiscation and penalty. The appellants have imported 4 similar consignments, of old and used pipes and/ or re- rollable material, vide Bills of Entry No.2764222, 2764221, 2764303 and 2764267, all dated 20.07.2013, and have agreed for spot adjudication without Show cause Notice. Additional commissioner passed the orders-in-original, all dated, 18.12.2013, confiscating the goods and imposing redemption fine and penalty. The appellants paid the duty and redemption fine and got the goods released. The details of appeals and the orders-in-original are as follows.

2.2. On appeals preferred by the appellants, learned Commissioner (Appeals), vide a common impugned order, dated 28.05.2015, upheld the classification and valuation arrived at by the Original but reduced the redemption fine totally to Rs.6,50,000/-.

3. Shri Saurabh Kapoor, learned counsel for the appellant, reiterates the grounds of appeal and submits that the imported goods—flame cut pipes are rendered unfit for their original use— were corr