Tribunal upholds confiscation of goods without valid certificate, reduces fines

The Tribunal upheld the absolute confiscation of goods imported without a valid CDSCO certificate under Section 111(d) of the Customs Act, 1962. The judgment modified the impugned order by reducing the quantum of redemption fine and penalties imposed on the appellant company and the director. The appeal was disposed of, sustaining confiscation for some goods while allowing redemption for others, based on the statutory provisions and case-specific circumstances.

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Issues:
1. Mis-declaration of imported goods
2. Confiscation of goods under Customs Act, 1962
3. Compliance with CDSCO norms
4. Imposition of redemption fine and penalties
5. Request for re-export of goods

Analysis:
1. The case involves mis-declaration of imported goods by M/s Nirvanza Trading Pvt. Ltd., leading to a seizure under Section 110(1) of the Customs Act, 1962. The Customs Department found discrepancies in quantity, value, and noncompliance with CDSCO norms, resulting in undervaluation to evade customs duty.

2. The impugned order dated 19.06.2019 enhanced the declared value of goods and ordered confiscation under Section 111(d) of the Customs Act, 1962. Goods valued at Rs. 1,25,48,722/- were confiscated for attempted import without a valid CDSCO Certificate, violating the Drug & Cosmetics Act, 1940. Redemption of goods valued at Rs. 21,15,317/- was allowed on payment of a fine.

3. The appellant claimed innocence, attributing mis-declaration to the overseas supplier's error due to cross stuffing. However, the department's findings were not contested effectively. The rejection of declared value and re-determination under Customs Valuation Rules was deemed justified due to noncompliance with CDSCO requirements.

4. The imposition of redemption fine and penalties was challenged by the appellant, citing lack of malafides. The Revenue supported the impugned order's findings, emphasizing non-compliance with CDSCO norms and examination report discrepancies.

5. The Tribunal upheld the absolute confiscation of goods imported without a valid CDSCO certificate under Section 111(d) of the Customs Act, 1962. The appellant's request for re-export was not entertained separately, as it was considered distinct from the redemption process.

6. The judgment modified the impugned order by reducing the quantum of redemption fine and penalties imposed on the appellant company and the director. The appeal was disposed of, sustaining confiscation for some goods while allowing redemption for others, based on the statutory provisions and case-specific circumstances.

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