Tribunal upholds penalty for importing garments without license, stresses compliance with licensing requirements.

The Tribunal upheld the enhancement of declared value of imported goods, confiscation, and penalty imposition for importing garments without the necessary license. The respondent's redemption fine and penalty were maintained at 10% and 5% of the assessed value, respectively. The Tribunal emphasized compliance with licensing requirements under the Foreign Trade Policy and upheld the confiscation under Section 111(d) of the Customs Act, 1962. The impugned order was affirmed, dismissing the Revenue's appeal, as the redemption fine and penalty were deemed appropriate to serve justice.

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Issues Involved:
The issues involved in the judgment are the enhancement of declared value, confiscation of imported goods, imposition of redemption fine and penalty, classification of goods under Tariff Item No.63090000, licensing requirements under the Foreign Trade Policy, and compliance with Customs Act, 1962.

Enhancement of Declared Value:
The respondent imported old and used worn clothing, which were completely fumigated. The declared value was enhanced from US$ 0.40 per kg to US$ 0.60 per kg. The Adjudicating Authority imposed redemption fine and penalty based on the classification of the goods under Tariff Item No.63090000 and the licensing requirements under the Foreign Trade Policy.

Confiscation and Penalty Imposition:
Confiscation under Section 111(d) of the Customs Act, 1962 was invoked for the import of 'old and serviceable garments' without the required import license as per the Foreign Trade Policy. The Tribunal upheld the confiscation of the goods and imposed a redemption fine of 10% and a penalty of 5% of the assessed value, considering the failure to comply with licensing requirements.

Compliance with Customs Act, 1962:
The Tribunal referred to a previous case where it was observed that confiscation under Section 111(d) could be justified for imports without the necessary license. The Tribunal emphasized the importance of complying with the licensing requirements and upheld the confiscation of the goods under Section 111(d) of the Customs Act, 1962.

Decision and Upholding of Impugned Order:
Based on the cited decision, the Tribunal found the redemption fine and penalty imposed on the respondent to be sufficient at 10% and 5% respectively. The Tribunal upheld the impugned order, dismissing the appeal filed by the Revenue. The Tribunal concluded that the redemption fine and penalty confirmed by the Commissioner (Appeals) were adequate to serve the ends of justice.

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