Tribunal upholds penalties for import violations, deems fine sufficient. Confiscation and penalties deemed appropriate.

The Tribunal dismissed the appeals filed by the Revenue, upholding the impugned order. The redemption fine and penalty imposed on the respondent were deemed sufficient, and no infirmity was found in the impugned order. Confiscation under Section 111(d) was upheld for import of goods without the required license under the Foreign Trade Policy, while the Tribunal found the enhanced declared value and penalties appropriate.

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Issues involved:
The issues involved in the judgment are the enhancement of declared value of imported goods, imposition of redemption fine and penalty, classification of goods under restricted tariff item, and compliance with licensing requirements.

Enhancement of declared value:
The respondent imported old and used worn clothing, which were completely fumigated. The declared value was enhanced from US$ 1.05 per kg to US$ 1.316 per kg. The Adjudicating Authority imposed redemption fine and penalty due to the classification of the goods under Tariff Item No.63090000, which is a restricted item for import. The Tribunal observed that the invocation of Section 111(m) for confiscation does not conform with the law in the absence of a proper declaration. Confiscation under Section 111(d) was upheld for import of goods without the required license under the Foreign Trade Policy.

Imposition of redemption fine and penalty:
The Adjudicating Authority had imposed redemption fine and penalty at the rate of 30% and 10% respectively, which was later reduced to 10% and 5% by the Commissioner. The Tribunal, following a previous decision, upheld the confiscation of goods under Section 111(d) of the Customs Act, 1962. The Tribunal found that the redemption fine and penalty imposed on the respondent at 10% and 5% of the assessed value, respectively, were sufficient.

Compliance with licensing requirements:
The Tribunal noted the failure to comply with licensing requirements for the import of restricted goods under Tariff Item No.63090000. Despite the issues raised regarding the margin of profit and the validity of the market survey, the Tribunal did not find any serious resistance to the ascertained value. Due to the admitted failure to comply with licensing requirements, the confiscation of goods under Section 111(d) was upheld, while the redemption fine and penalty were reduced to 10% and 5% respectively.

Conclusion:
The Tribunal dismissed the appeals filed by the Revenue, upholding the impugned order. The redemption fine and penalty imposed on the respondent were deemed sufficient, and no infirmity was found in the impugned order.

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