2026 (3) TMI 1653 - AT - Customs

Bona fide misdeclaration dispute leads to reduction of redemption fine and penalty for imported goods.

Where excess weight in imported goods was detected only on customs examination and the declared weight matched the supplier's invoice and packing list, ... Redemption fine - Penalty for misdeclaration - Bona fide discrepancy in imported goods weightRedemption fine - Penalty for misdeclaration - Bona fide discrepancy in imported goods weight - Imposition of redemption fine and penalty for the excess weight found in the imported goods was upheld in principle, but the quantum required reduction. - HELD THAT: - The Tribunal found that the discrepancy in the weight of the imported goods was not in dispute, and the appellant also did not contest the consequential differential duty. However, the invoice and packing list issued by the foreign supplier showed the same weight as declared in the Bill of Entry, and the excess quantity came to light only on physical verification after arrival. Since the Revenue could not attribute any specific role to the appellant in the excess weight and the appellant's bona fides were not doubted, liability under the statute could still follow for the mismatch, but the redemption fine and penalty imposed were considered excessive in the peculiar facts of the case. [Paras 5]The redemption fine and penalty were sustained but reduced.Final Conclusion: The appeal was partly allowed. While the mismatch in weight and consequential liability were not disturbed, the redemption fine and penalty were reduced in view of the appellant's bona fides and the absence of any established specific role in the misdeclaration. Issues: Whether the redemption fine and penalty imposed for discrepancy in the declared and actual weight of imported goods were liable to be reduced.Analysis: The declared weight in the import documents matched the supplier's invoice and packing list, while the excess weight was discovered only on customs examination. No specific role or deliberate involvement of the importer in the misdeclaration of weight was established. In the circumstances, the importer's bona fides were not doubted, and the quantum of redemption fine and penalty was considered excessive in relation to the facts proved.Conclusion: The redemption fine and penalty were reduced.Final Conclusion: The order was modified to the extent of reducing the monetary consequences arising from the misdeclaration, and the appeal succeeded only in part.Ratio Decidendi: Where misdeclaration is not shown to be deliberate and the importer's bona fides remain intact, the redemption fine and penalty may be reduced to a proportionate level.