Marble classification under Heading 2515.12 upheld; confiscation and redemption fine sustained, but penalty deleted for lack of wilful misdeclaration.

Marble strips sawn and honed, but not transformed beyond the processing recognised in prior decisions, remained classifiable under Heading 2515.12 rather than Chapter 68, and that classification was upheld. Because goods falling under Heading 2515.12 required an import licence under the Exim Policy, import without such licence justified confiscation and the redemption fine was sustained as not excessive. Penalty was set aside, however, because the record did not establish wilful misdeclaration, which was necessary to support penal action in the customs proceedings.

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Issues: (i) Whether the imported marble strips were classifiable under Chapter 68 or Heading 2515.12 of the Customs Tariff Act; (ii) Whether the import without licence justified confiscation and redemption fine, and whether penalty was sustainable.

Issue (i): Whether the imported marble strips were classifiable under Chapter 68 or Heading 2515.12 of the Customs Tariff Act.

Analysis: The goods were marble strips imported after sawing and further processing, including honing. The earlier decisions concerning the same importer had already held that marble blocks subjected even to polishing would remain under Heading 2515.12. Since honing precedes polishing, the additional process did not take the goods out of Heading 2515.12 and into Chapter 68.

Conclusion: The classification under Heading 2515.12 was upheld and the assessee's contention on Chapter 68 was rejected.

Issue (ii): Whether the import without licence justified confiscation and redemption fine, and whether penalty was sustainable.

Analysis: Once the goods were held to fall under Heading 2515.12, their import required a licence under the Exim Policy. Import without the required licence justified confiscation, and the redemption fine was not found excessive. However, the record did not show wilful misdeclaration.

Conclusion: Confiscation and redemption fine were upheld, but the penalty was set aside.

Final Conclusion: The appeal succeeded only to the limited extent of deletion of penalty, while the classification, confiscation, and redemption fine were maintained.

Ratio Decidendi: Marble goods that remain processed only up to honing or polishing continue to fall under Heading 2515.12, and absence of wilful misdeclaration is necessary to sustain penalty in such customs proceedings.

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