Tribunal Adjusts Fines and Confirms Duty Refunds, Reduces Penalties and Affirms Most of Commissioner's Order.

The Tribunal modified the Commissioner's order by reducing the redemption fine to Rs. 85,000/- for undeclared goods and setting aside the confiscation and fine for goods not available. It reduced penalties under s. 114A to Rs. 1.25 lakh and confirmed Rs. 3 lakh under s. 112(a). The Tribunal directed refunds for duties on non-redeemed goods and confirmed the adjustment of Rs. 14,00,000/- towards differential duty. The rest of the order was affirmed.

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Issues Involved:
1. Confiscation of goods u/s 111(m) of the Customs Act, 1962.
2. Imposition of redemption fine u/s 125 of the Customs Act, 1962.
3. Demand of duty u/s 28(1) of the Customs Act, 1962.
4. Imposition of penalty u/s 114A and 112(a) of the Customs Act, 1962.
5. Adjustment of payment towards differential duty.

Summary:

1. Confiscation of Goods u/s 111(m) of the Customs Act, 1962:
The Commissioner ordered the confiscation of goods valued at Rs. 14,58,842/- covered under Bill of Entry No. 36803, dated 14-7-97, and goods cleared under previous Bills of Entry valued at Rs. 13,21,82,873/-. The Tribunal agreed that only goods valued at Rs. 3,68,064/- which were not declared to customs are liable for confiscation, not the entire consignment. The order of confiscating goods valued at Rs. 13,21,82,873/- which were not available for confiscation was set aside.

2. Imposition of Redemption Fine u/s 125 of the Customs Act, 1962:
The Commissioner allowed the confiscated goods to be redeemed on payment of a redemption fine of Rs. 1,50,000/-. The Tribunal reduced the redemption fine to Rs. 85,000/- for the undeclared goods valued at Rs. 3,68,064/-. The fine of Rs. 5,00,000/- imposed in lieu of confiscation for goods cleared previously was also set aside.

3. Demand of Duty u/s 28(1) of the Customs Act, 1962:
The Commissioner demanded duty of Rs. 16,73,368/- from M/s. Comptech Electronics Pvt. Ltd., Chennai. The Tribunal directed that no duty should be charged on goods which were confiscated but not redeemed and ordered a refund for the same.

4. Imposition of Penalty u/s 114A and 112(a) of the Customs Act, 1962:
The Commissioner imposed a penalty of Rs. 2,48,409/- u/s 114A and Rs. 3,00,000/- u/s 112(a) for goods imported prior to 28-9-96. The Tribunal reduced the penalty u/s 114A to Rs. 1.25 lakh and confirmed the penalty of Rs. 3.00 lakhs u/s 112(a). The penalty of Rs. 1.00 lakh on Shri Vikas Chandra, Managing Director, was reduced to Rs. 25,000/-.

5. Adjustment of Payment Towards Differential Duty:
The Commissioner ordered the adjustment of Rs. 14,00,000/- paid by M/s. Comptech Electronics P. Ltd. towards differential duty. The Tribunal directed that the duty should be deducted for goods not redeemed and a refund should be granted suo motu.

Conclusion:
The Tribunal modified the impugned order by reducing the redemption fine, setting aside the confiscation and fine for goods not available for confiscation, reducing penalties, and directing refunds for duties on non-redeemed goods. The rest of the order was confirmed.

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