Country-of-origin declaration breach on footwear upheld, but redemption fine and penalty reduced for absence of mala fide intent.

Footwear packages that omitted the required country-of-origin declaration were held liable to confiscation for non-compliance with Notification No. 1/64-Cus. However, where there was no mala fide intention, no undue benefit from the omission, and the importer was willing to comply once the requirement came to light, leniency was considered justified in fixing the consequential monetary sanctions. The violation was therefore maintained, but the redemption fine and penalty were reduced.

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Issues: Whether, despite violation of the condition requiring country of origin to be mentioned on the footwear packages, the redemption fine and penalty warranted reduction in the absence of mala fide intention.

Analysis: The goods were liable to confiscation because the condition in Notification No. 1/64-Cus. requiring declaration of country of origin had not been complied with. At the same time, the facts showed that the appellant had no mala fide intention, derived no undue benefit from the omission, and was prepared to comply once the requirement was realised. On those facts, the Tribunal considered that leniency was justified in the quantum of redemption fine and penalty.

Conclusion: The violation was upheld, but the redemption fine and penalty were reduced, which is in favour of the assessee to that extent.

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