2016 (2) TMI 981 - AT - Customs

Tribunal decision on misdeclared goods: Confiscation justified, but release allowed with reduced fines

Kuber Casting Pvt. Ltd. Versus Commissioner of Customs, Amritsar

Kuber Casting Pvt. Ltd. Versus Commissioner of Customs, Amritsar - 2016 (339) E.L.T. 264 (Tri. - Chan.) Issues:Appeal against imposition of redemption fine and penalty.Analysis:1. The case involved an appeal against an order imposing redemption fine and penalty on the appellant for importing a consignment declared as heavy melting scrap, which was later found to contain re-rollable scrap as well. The weight of the consignment was also inaccurately declared, leading to detention and adjudication by the authorities. The appellant paid duty on the enhanced value and actual weight of the goods. The adjudicating authority held the goods liable for confiscation but allowed redemption on payment of fine and penalty, a decision upheld by the Commissioner (A) and challenged in the present appeal.2. The appellant argued that they ordered heavy melting scrap, used it in their furnace, and had a certificate of origin confirming the goods as heavy melting scrap. They claimed the supplier's mistake led to the incorrect weight declaration, denying any intent to misdeclare. The appellant contended that redemption fine and penalty should not apply in such circumstances.3. The respondent reiterated the findings of the impugned order, supporting the imposition of redemption fine and penalty.4. After hearing both parties and considering their submissions, the tribunal proceeded with its analysis.5. The tribunal found that despite part of the consignment being re-rollable scrap, the appellant ordered heavy melting scrap, used it as such, and had documentation supporting this. As no contrary evidence existed, the goods were deemed not liable for confiscation on this ground. However, due to the misdeclaration of weight, where goods were found in excess of the declared weight during examination, the tribunal agreed with the lower authorities that confiscation was justified. Since the goods were not restricted, they could be released upon payment of redemption fine and penalty. The tribunal deemed the initially imposed fine and penalty excessive, reducing them to more reasonable amounts due to the lack of liability for confiscation based on misdeclaration of description.6. Consequently, the tribunal disposed of the appeal with the above observations.