Tribunal reduces fines for mis-declared mobile phones, cites obscure brand names

The Tribunal reduced the redemption fine from Rs. 8 lakhs to Rs. 1 lakh and the penalty from Rs. 2,12,632 to Rs. 25,000 for mis-declaration of imported branded mobile phones due to the obscure brand names and lack of registration in India and China. The appellant's appeal against confiscation and penalties under Sections 111(m) and 114 A of the Customs Act, 1962 was partially successful, with the Tribunal showing leniency based on the limited recognition of the brand in the market.

---

---

Issues: Mis-declaration of imported goods, confiscation under Section 111(m) of the Customs Act, 1962, imposition of redemption fine, imposition of penalty under Section 114 A of the Customs Act, 1962

In this case, the appellant imported a consignment of mobile phones declaring them as unbranded, but Customs examination revealed the presence of branded phones. The Customs authorities alleged mis-declaration and enhanced the value of the goods based on local market prices. The adjudicating authority ordered confiscation under Section 111(m) of the Customs Act, 1962, and imposed a redemption fine of Rs. 8 lakhs along with a penalty of Rs. 2,12,632. The appellant contested the confiscation and penalties, claiming they ordered unbranded phones but received branded ones due to the overseas supplier. The appellant argued that the brand names were not well-known and not registered with Customs IPR, 2007. The Departmental Representative supported the original findings. The Tribunal acknowledged the mis-declaration but considered the obscure brand names and lack of registration in India and China. Consequently, the redemption fine was reduced to Rs. 1 lakh and the penalty to Rs. 25,000, showing leniency based on the brand's limited recognition in the market. The appeal was disposed of with the modified penalties.

---