Misdeclaration and restricted import classification: confiscation and penalty sustained, with reduced redemption fine and personal penalty.

The Bill of Entry and supporting import documents described the goods as heavy melting scrap, so misdeclaration was not established and that finding was set aside. However, the importer accepted the examination report that the goods were seamless pipes, which were restricted for import under the Foreign Trade Policy, so confiscation and the imposition of redemption fine and penalty were justified. The quantum of the redemption fine and personal penalty was reduced in view of the absence of misdeclaration and the overall facts.

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Issues: Whether the finding of misdeclaration was sustainable, and whether confiscation with redemption fine and penalty for import of goods restricted under the Foreign Trade Policy was justified.

Analysis: The Bill of Entry described the goods as heavy melting scrap, and the import documents supported that description. On that basis, the charge of misdeclaration was not made out. At the same time, the importer accepted the examination report that the goods were seamless pipes, which were restricted for import under paragraph 2.17 of the Foreign Trade Policy. In those circumstances, confiscation of the goods and imposition of redemption fine and penalty were justified, though the quantum warranted reduction in view of the absence of misdeclaration and the overall facts of the case.

Conclusion: The finding of misdeclaration was set aside, but confiscation and penalty were sustained with reduced redemption fine and reduced personal penalty.

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