Tribunal modifies order, upholds export goods confiscation, imposes fines on individuals.

The Tribunal modified the original order by setting aside the confiscation of goods seized from the bonded store room and various shops, as well as the demand for customs duty. The confiscation of mis-declared export goods was upheld, allowing redemption upon payment of a fine. Personal penalties were imposed on specific individuals, with each being fined Rs. 1,00,000. The judgment was pronounced on 11.04.2017.

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Issues Involved:
1. Confiscation of export goods.
2. Confiscation of goods seized from the bonded store room.
3. Demand of customs duty.
4. Penalties imposed on individuals.

Issue-wise Detailed Analysis:

1. Confiscation of Export Goods:
The export consignment declared as fully finished ball bearings valued at Rs. 24,06,899/- was found to contain old, rusted, and damaged ball bearings valued at Rs. 2,65,942/-. The Customs authorities concluded that this mis-declaration warranted confiscation under Section 113(d) and 113(i) of the Customs Act, 1962. The Tribunal upheld this confiscation, finding no reason to interfere with the impugned order regarding the export goods.

2. Confiscation of Goods Seized from the Bonded Store Room:
Goods valued at Rs. 2,01,94,912/- were seized from the bonded store room on the allegation that they were illegally imported fully finished ball bearings. Additionally, goods valued at Rs. 27,53,400/- seized from various shops and godowns were also ordered for confiscation. The Tribunal found that the only evidence for these allegations were the inculpatory statements of the partners, which had been retracted before the Magistrate. Without corroborating documentary evidence, the Tribunal concluded that the confiscation of goods from the bonded store room and other locations was not justified and set aside the confiscation.

3. Demand of Customs Duty:
The impugned order demanded customs duty amounting to Rs. 3,84,43,296/- for the eight consignments imported under Notification No. 13/81-Cus. This demand was based on the allegation that the imported goods were fully finished ball bearings and were diverted into the local market. The Tribunal found that the evidence relied upon was insufficient, mainly resting on retracted statements. The Tribunal emphasized that such serious charges require solid and tangible evidence, which was lacking in this case. Consequently, the demand for customs duty was set aside.

4. Penalties Imposed on Individuals:
The impugned order imposed personal penalties on the partners of the firm and other individuals under Sections 112 and 114 of the Customs Act, 1962. The Tribunal modified these penalties, imposing a penalty of Rs. 1,00,000/- each on Shri Mohan Lal Thapar and Shri Kanchan Kumar Kaura.

Conclusion:
The Tribunal's order modified the original order as follows:
- Set aside the confiscation of goods valued at Rs. 2,01,94,912/- seized from the bonded store room.
- Set aside the confiscation of goods valued at Rs. 27,53,400/- seized from various shops and godowns.
- Set aside the demand for customs duty amounting to Rs. 3,84,43,296/-.
- Upheld the confiscation of goods entered for export under Section 113(d) and 113(i) of the Customs Act, 1962.
- Allowed redemption of export goods on payment of a fine of Rs. 5,00,000/-.
- Imposed penalties of Rs. 1,00,000/- each on Shri Mohan Lal Thapar and Shri Kanchan Kumar Kaura.

The impugned order was thus modified, and the Tribunal pronounced this judgment in open court on 11.04.2017.

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