CESTAT Chennai: Confiscation upheld for misdeclared quantity, penalty waived for value discrepancies.

The Appellate Tribunal CESTAT, CHENNAI partially allowed the appeal involving the confiscation of imported Tungsten Carbide Tips Cutting Tools under the Customs Act, 1962. The goods were confiscated for non-inclusion of quantity in the Bill of Entry and discrepancies in value. The Tribunal upheld the confiscation based on quantity misdeclaration but set aside the penalty for value discrepancies. The fine was reduced to Rs. 50,000 considering the actual excess quantity. The appeal was partly allowed, and the order was pronounced on 13-1-2009.

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Issues involved: Confiscation of imported goods u/s 111(l) and u/s 111(m) of the Customs Act, 1962, misdeclaration of quantity and value, imposition of fine and penalty.

The judgment by the Appellate Tribunal CESTAT, CHENNAI involved the confiscation of Tungsten Carbide Tips Cutting Tools imported by the appellants under a Bill of Entry. The goods were confiscated u/s 111(l) for non-inclusion of a quantity of 475.64 kgs. in the Bill of Entry and u/s 111(m) as the value did not correspond with contemporaneous imports. A penalty of Rs. 50,000/- was imposed on the appellants.

Regarding the misdeclaration of quantity, the Tribunal upheld the finding of contravention of Section 111(l) as the excess quantity was not included in the Bill of Entry. The appellants' explanation that the excess quantity was sent by mistake was deemed untenable. The charge of contravention of Section 111(m) was set aside based on previous decisions, stating that mere enhancement of value is not sufficient for confiscation. The penalty was also set aside. The Tribunal reduced the fine to Rs. 50,000/- considering the actual excess quantity and the absence of evidence of misdeclaration of value.

In conclusion, the appeal was partly allowed by the Tribunal, with the operative part of the order pronounced on 13-1-2009.

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