Importer Fined for Mis-Declaration of Origin, CESTAT Chennai Reduces Penalties

The Appellate Tribunal CESTAT Chennai confirmed a duty of around Rs. 2,00,000 on an importer who mis-declared the country of origin of "Printing Rollers" from the UK as German to evade customs duty. The importer admitted to undervaluing the goods and was found guilty of mis-declaration. The Tribunal reduced the redemption fine from Rs. 4,00,000 to Rs. 2,00,000 and the penalty from Rs. 2,00,000 to Rs. 1,00,000, while upholding the confirmed duty. The appeal was rejected except for these modifications.

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Issues: Mis-declaration of country of origin, evasion of customs duty, confirmation of duty, redemption fine, penalty

In this judgment by the Appellate Tribunal CESTAT Chennai, the appellant imported "Printing Rollers" from the UK but mis-declared them as of German origin to evade customs duty. The appellant admitted to directing the supplier to undervalue the goods in the invoices, which was not retracted. The original authority found mis-declaration to evade duty, supported by the importer's un-retracted statement and the price details matching the manufacturer's price. Consequently, the duty of around Rs. 2,00,000 was confirmed, with goods confiscation and an option for redemption on payment of Rs. 4,00,000 fine, along with a penalty of Rs. 2,00,000. The Commissioner (Appeals) upheld this decision, leading to the appeal. The appellant sought reduction in the redemption fine and penalty, not challenging the merit of the issue. The Tribunal acknowledged the confirmed duty of Rs. 2,00,000 and agreed that the redemption fine of Rs. 4,00,000 was excessive, reducing it to Rs. 2,00,000. The penalty was also reduced from Rs. 2,00,000 to Rs. 1,00,000. Apart from these modifications, the appeal was rejected.

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