Tribunal upholds wristwatch confiscation & penalties, sets aside fines on unavailable goods and individual

The Tribunal upheld the confiscation of wrist watches and penalties on M/s. S.S. Watch and Shri Girvar Singh but set aside the redemption fines on unavailable goods and penalties on Shri Sunil Bansal.

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Issues Involved:
1. Confiscation of wrist watches and imposition of redemption fine.
2. Allegations of fraudulent DEPB claims through export-import cycles.
3. Imposition of penalties on various parties under Sections 112 and 114 of the Customs Act.
4. Validity of redemption fines on goods not available for confiscation.

Issue-wise Detailed Analysis:

1. Confiscation of Wrist Watches and Imposition of Redemption Fine:
The Commissioner of Customs, New Delhi, confiscated wrist watches imported by M/s. S.S. Watch Industries under Section 111(m) of the Customs Act, with an option to redeem them on payment of a fine. The judgment upheld the confiscation of wrist watches imported at Delhi and Mumbai, as these were found to be Indian-made "Romano" and "Sitax" brand watches, previously exported by M/s. S.S. Watch, M/s. Rama Watch, or M/s. Hanu Exports, and re-imported at a lower declared value.

2. Allegations of Fraudulent DEPB Claims Through Export-Import Cycles:
The Tribunal found that M/s. S.S. Watch, M/s. Rama Watch, and M/s. Hanu Exports exported wrist watches at an inflated price of US $8.5 per piece to Dubai and re-imported them at a declared price of US $0.95 to 1.05 per piece. This cycle was repeated to fraudulently claim higher DEPB benefits. The Tribunal noted that the same watches were exported and re-imported multiple times without any processing, such as gold plating, as claimed by the appellants. The evidence included blank invoices and letters indicating the orchestration of these transactions.

3. Imposition of Penalties on Various Parties Under Sections 112 and 114 of the Customs Act:
Penalties were imposed on M/s. S.S. Watch, its partner Shri Sunil Bansal, M/s. Rama Watch, and Shri Girvar Singh of M/s. G.S. Enterprises under Sections 112 and 114 of the Customs Act. The Tribunal upheld the penalties on M/s. S.S. Watch and Shri Girvar Singh but set aside the penalties on Shri Sunil Bansal, as separate penalties on both the firm and its partner were deemed unnecessary.

4. Validity of Redemption Fines on Goods Not Available for Confiscation:
The Tribunal referred to the judgment of the Hon'ble Punjab & Haryana High Court in the case of Commissioner of Customs, Amritsar v. M/s. Raja Impex (P) Ltd., which held that redemption fines under Section 125 could not be imposed on goods not available for confiscation unless they were released provisionally against a bond. The Tribunal set aside the redemption fines imposed on goods that were not available for confiscation and were not released provisionally against a bond.

Conclusion:
The Tribunal upheld the confiscation of wrist watches and penalties on M/s. S.S. Watch and Shri Girvar Singh but set aside the redemption fines on unavailable goods and penalties on Shri Sunil Bansal. The appeals were disposed of accordingly.

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