Tribunal Reduces Fine & Imposes Penalties on Appellant

The tribunal confirmed the duty on the shortage of goods, reduced the redemption fine to Rs. 50,000, and imposed penalties of Rs. 25,000 and Rs. 10,000 on the appellant. The appeal was disposed of with these orders on 26.04.2017.

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Issues:
- Duty demanded on shortage of goods
- Redemption fine imposed on seized goods
- Penalty imposed on the appellant

Analysis:
1. Duty on Shortage of Goods:
The appellant contested the duty demanded on the shortage of goods, arguing that the excess stock of readymade garments (RMG) found in the rejected goods godown was inevitable due to manufacturing defects. They claimed that the rejected goods were not marketable as they did not have the required affixed retail selling price (RSP) as per regulations. However, the adjudicating authority found that the goods were packed in master cartoons, indicating they were meant for clandestine clearance. The tribunal upheld the confiscation of these goods and imposed a reduced redemption fine of Rs. 50,000 and a penalty of Rs. 25,000.

2. Redemption Fine on Seized Goods:
The appellant further challenged the redemption fine imposed on the seized goods. The tribunal observed that while a portion of the seized goods were rejected items, the remaining RMGs were in processing condition and were not entered in the RG-1 register. The tribunal reduced the redemption fine to Rs. 50,000, considering the circumstances of the case and the mix of rejected and unaccounted goods.

3. Penalty Imposed on the Appellant:
Regarding the penalty imposed on the appellant for the shortage of 5203 pcs of RMG, the appellant argued that these goods were mixed with rejected goods and hence not entered in statutory records. However, the tribunal found that these goods were finished and required entry in the RG-1 register. As no invoices were issued, the appellant was held liable to pay duty and penalized with a Rs. 10,000 penalty.

In conclusion, the tribunal confirmed the duty on the shortage of goods, reduced the redemption fine to Rs. 50,000, and imposed penalties of Rs. 25,000 and Rs. 10,000 on the appellant. The appeal was disposed of with these orders on 26.04.2017.

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