Importer Appeals Dismissed for Mis-Declaration of Goods

The Tribunal dismissed the appeals, upholding the original order that confirmed mis-declaration of imported goods as synthetic diamond powder instead of 'starch.' The appellants' argument based on a second test report was rejected, with the Tribunal relying on circumstantial evidence and discrepancies in the goods' description to support the mis-declaration findings. The Commissioner's order highlighted the lack of evidence supporting the appellants' claim of inadvertent supply by the foreign supplier. The decision was affirmed on 08.02.2017, resulting in the dismissal of the appeals.

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Issues:
Mis-declaration of imported goods leading to confiscation, redemption fine, customs duty, and penalties.

Analysis:
1. The appellants, engaged in garment manufacturing, imported 'Starch' but faced conflicting reports from CRCL regarding the nature of the goods.
2. The department retested the samples, confirming the goods as synthetic diamond powder and 'other than starch,' leading to a demand of customs duty amounting to Rs. 39,83,541.
3. The Order-in-original upheld the charges, leading to confiscation of goods, redemption fine, and penalties on the appellants.
4. The appellants argued that the second test report confirming 'starch' should prevail, citing relevant case law.
5. The Revenue emphasized physical examination findings and CRCL reports indicating mis-declaration.
6. The Tribunal concluded that the goods were mis-declared, importing synthetic diamond powder instead of 'starch,' based on circumstantial evidence.
7. The Commissioner's order highlighted discrepancies in goods' description, supplier's admission, and circumstantial evidence supporting mis-declaration.
8. The appellants claimed inadvertent supply by the foreign supplier to avoid penalties, but lacked evidence to support this claim.
9. The Tribunal upheld the impugned order, citing lack of interference due to established reasons.
10. Consequently, the appeals were dismissed, affirming the original order's decision on 08.02.2017.

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