Misdeclaration of import value can sustain confiscation, while redemption fine and penalty may still be reduced on the facts.

Rejection of the declared transaction value and acceptance of the enhanced assessable value on the importer's request meant the consignment was misdeclared in value and liable to confiscation under the customs provisions invoked. Confiscation of the imported copper scrap was therefore upheld. Although the goods were fully examined and no incriminating goods were found, the redemption fine and personal penalty were considered excessive on the facts and were reduced. The article thus notes that misdeclaration of value can justify confiscation, while monetary consequences may still be scaled down according to the circumstances.

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Issues: (i) whether confiscation of the imported copper scrap for misdeclaration of value was justified after rejection of the declared transaction value and enhancement of assessable value at the importer's request; (ii) whether the redemption fine and penalty required reduction in the facts of the case.

Issue (i): whether confiscation of the imported copper scrap for misdeclaration of value was justified after rejection of the declared transaction value and enhancement of assessable value at the importer's request.

Analysis: The declared value was rejected, the assessable value was enhanced on the importer's request, and that enhanced value was accepted with duty discharged. On those facts, the consignment stood misdeclared in value and became liable to confiscation under the customs provisions invoked by the adjudicating authority.

Conclusion: Confiscation of the goods was upheld.

Issue (ii): whether the redemption fine and penalty required reduction in the facts of the case.

Analysis: Although confiscation was sustained, the record showed full examination of the consignment and no incriminating goods were found. In that background, the quantum of redemption fine and personal penalty was found to be excessive and was scaled down to meet the ends of justice.

Conclusion: The redemption fine and penalty were reduced.

Final Conclusion: The appeal succeeded only to the extent of reduction in monetary consequences, while confiscation for misdeclaration was maintained.

Ratio Decidendi: Where declared import value is rejected and the enhanced value is accepted by the importer, misdeclaration in value can sustain confiscation, but the quantum of redemption fine and penalty remains open to reduction on the facts and circumstances of the case.

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