Misdeclaration to evade customs duty justified enhanced penalty despite criminal acquittal under customs adjudication.

Deliberate misdeclaration of imported goods to evade customs duty justified enhancement of penalty where wool waste was declared but a substantial part of the consignment was found to be synthetic waste. The adjudicating finding of intentional evasion was not challenged, and the importer's acquittal in the criminal case did not affect the separate customs liability. In view of the gravity of the offence, the original penalty was treated as inadequate and was enhanced in favour of Revenue.

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Issues: Whether the penalty imposed on the importer for misdeclaration and evasion of customs duty was liable to be enhanced.

Analysis: The imported consignment was found to have been misdeclared, with wool waste shown in the documents while a substantial part of the goods was found to be synthetic waste. The findings of the adjudicating authority that the goods were deliberately misdeclared to evade duty were not challenged by the respondents. The fact of acquittal in the criminal case did not affect the adjudicated customs liability, and the circumstances of the case showed a deliberate attempt to evade duty. In these circumstances, the original penalty was considered inadequate having regard to the gravity of the offence.

Conclusion: The penalty was rightly enhanced from Rs. 10,000 to Rs. 25,000, in favour of Revenue.

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