Tribunal Upholds Duty Demand on Sawn Woods; Appellant Exempt from Confiscation, Fine, and Penalty

The Tribunal upheld the duty demand on 10% of the consignment classified as sawn woods under CTH 4407.29. However, the Tribunal set aside the confiscation of goods, fine of Rs. 35,000, and penalty of Rs. 5,000 imposed on the appellant, as there was no intent to evade customs duty due to the majority of the consignment being correctly declared.

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Issues:
Classification of imported goods under CTH heading, Confiscation of goods, Imposition of fine and penalty.

Classification of Imported Goods:
The appellant imported goods declared as "Teak Wood roughly squared" seeking classification under CTH 4403. However, upon examination, it was reported that the goods were in "Sawn" form classifiable under CTH heading 4407.99. The examination revealed that 10% of the goods were sawn wood, leading to a dispute regarding the correct classification for duty calculation. The appellant waived their right to show-cause notice and personal hearing, agreeing with the examination report conducted in their presence. Consequently, the duty demand on 10% of the consignment as sawn woods under CTH 4407.29 was upheld by the Tribunal.

Confiscation of Goods and Imposition of Fine and Penalty:
The adjudicating authority had ordered confiscation of the sawn woods valued at Rs. 1,01,862 under Section 111(m) of the Customs Act, with an option to redeem upon payment of a fine of Rs. 35,000. Additionally, a penalty of Rs. 5,000 was imposed on the appellant. The appellant contested these penalties, arguing that there was no deliberate mis-declaration, as 90% of the consignment consisted of the declared goods. The Tribunal agreed, finding no intent to evade customs duty. As a result, the Tribunal set aside the fine and penalty while upholding the duty demand on the 10% of the consignment classified as sawn woods. The appeal was disposed of accordingly.

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