Tribunal Reduces Redemption Fine for Mis-Declared Exports, Confirms Central Excise Duty

The Tribunal acknowledged mis-declaration of goods during export, leading to confiscation and imposition of redemption fine. The redemption fine was reduced from Rs. 1,89,960 to Rs. 30,000 under Section 125 of the Customs Act, 1962. Central Excise duty demand of Rs. 23,479 was confirmed. Penalties under Section 11AC of the Central Excise Act, 1944 were set aside, but those under Section 114 of the Customs Act, 1962 were upheld due to incorrect export declaration. The Tribunal disposed of the appeals based on these findings.

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Issues:
- Mis-declaration of goods
- Confiscation of goods
- Imposition of redemption fine
- Central Excise duty demand
- Penalties imposed under various sections

Mis-declaration of Goods:
The case involved mis-declaration of goods during export, where the appellant declared 16 rolls of PP woven fabrics but only 12 rolls of PP woven fabrics and 4 rolls of FIBC were actually loaded. This mis-declaration led to the confiscation of goods under Section 113 of the Customs Act, 1962. The Tribunal acknowledged the mis-declaration and reduced the redemption fine imposed on the appellant company from Rs. 1,89,960 to Rs. 30,000 in the interest of justice.

Confiscation of Goods and Imposition of Redemption Fine:
Due to the mis-declaration of goods, the authorities proceeded with the confiscation of goods and imposed a redemption fine on the appellant company. The Tribunal found the redemption fine to be excessive considering the quantity of seized finished goods of FIBC. Consequently, the redemption fine was reduced from Rs. 1,89,960 to Rs. 30,000 under Section 125 of the Customs Act, 1962.

Central Excise Duty Demand:
The appellant did not contest the Central Excise duty demand of Rs. 23,479 confirmed against it under Section 11A of the Central Excise Act, 1944. The Tribunal noted this aspect but focused on the contested issues related to the confiscation of goods and imposition of penalties.

Penalties Imposed Under Various Sections:
The penalties imposed on the appellant company under Section 11AC of the Central Excise Act, 1944 were set aside as there was no evidence of mala fides or intentional wrongdoing to defraud government revenue. However, the penalties imposed under Section 114 of the Customs Act, 1962 were upheld since both appellants admitted to incorrectly filing the declaration for export. The Tribunal found that the penalties under Section 114 were justified in this context. Overall, the Tribunal disposed of the appeals based on the above considerations, providing detailed reasoning for each issue addressed in the judgment.

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