Customs Tribunal Cuts Fines: Redemption Fine Reduced to Rs. 2,50,000, Penalty Slashed to Rs. 20,000; No Intent to Misdeclare.

The Tribunal modified the adjudicating authority's order by reducing the redemption fine from Rs. 5 lakhs to Rs. 2,50,000 and the penalty from Rs. 1 lakh to Rs. 20,000 under the Customs Act, 1962. The Bench found no deliberate intent to misdeclare the goods, as the appellant intended to import only Aluminium scrap. The appeal was partly allowed, and the assisting counsel's efforts were noted.

---

---

Issues involved: Misdeclaration of goods, imposition of redemption fine and penalty under Customs Act, 1962.

Misdeclaration of Goods: The appellant declared goods as "Aluminium scrap tense" in a Bill of Entry, supplied by M/s. Zaina Exporters Pte Ltd., Singapore. Upon examination, it was found to be a mix of Aluminium and Tin coated brass. The Docks Officers reported the consignment contained 75% Aluminium and 17280 kgs of brass scrap. The PSI certificate had a typographical error, leading to post-shipment inspection for radiation, which was within permissible levels.

Imposition of Redemption Fine and Penalty: The adjudicating authority held the misdeclared goods liable for confiscation and enhanced their value under Section 112(m) of the Customs Act, 1962. A redemption fine of Rs. 5 lakhs under Section 125 and a penalty of Rs. 1 lakh under Section 112(a) were imposed. The appellant challenged only the redemption fine and penalty, not the value enhancement. The appellant argued that the redemption fine lacked details of a market survey as required by law. The penalty was contested on grounds that the mix of brass in the scrap was not deliberate.

Resolution: The Bench noted the absence of a market survey in the adjudicating authority's order and found no evidence of deliberate intent to import brass scrap. Considering the facts, the redemption fine was reduced to Rs. 2,50,000 and the penalty to Rs. 20,000. The appeal was partly allowed on these terms. The effort of the assisting counsel was appreciated for helping in the absence of the appellant.

Final Decision: The impugned order was modified to reduce the redemption fine and penalty, acknowledging the appellant's original intent to import only Aluminium scrap.

---