1992 (7) TMI 167 - AT - Customs

Tribunal reduces penalties in Customs Act case, emphasizes importer's responsibility

The Tribunal upheld the confiscation of goods under the Customs Act but reduced the redemption fine and set aside the penalty imposed on the appellants. ... Confiscation Issues:1. Discrepancies in debiting the Import-Export Pass Book.2. Allegations of misdeclaration and excess goods.3. Confiscation of goods under Customs Act.4. Imposition of penalty on the importer.5. Request for re-export of goods.6. Responsibility of importer in ensuring compliance with license terms.7. Judicial discretion in imposing penalties.Analysis:1. Discrepancies in debiting the Import-Export Pass Book:The appeal involved discrepancies in debiting the Import-Export Pass Book by the appellants. The Additional Collector of Customs issued a show cause notice regarding various discrepancies, leading to the appeal against the order.2. Allegations of misdeclaration and excess goods:The show cause notice alleged misdeclaration and excess goods, including High Resolution Monitors and Controller Cards, not covered by the Import-Export Pass Book. The appellants denied the charges, citing clerical errors and lack of detection by Customs officers.3. Confiscation of goods under Customs Act:The Additional Collector held certain goods liable for confiscation under Section 111(d) and (m) of the Customs Act, 1962. The appellants argued against the confiscation, claiming errors were detected and seeking permission for re-export.4. Imposition of penalty on the importer:The appellants were also penalized under Section 112 of the Customs Act. The appeal contested the penalty imposition, arguing that the errors were unintentional and the penalty was not warranted.5. Request for re-export of goods:The appellants requested re-export of the excess goods, offering to repatriate the foreign exchange equivalent to their cost. The authority considered the request in light of relevant provisions but decided against permitting re-export.6. Responsibility of importer in ensuring compliance with license terms:The Tribunal emphasized the responsibility of the importer to ensure goods imported are covered by the license. Discrepancies in the Import-Export Pass Book entries were deemed the importer's responsibility, irrespective of Customs officers' oversight.7. Judicial discretion in imposing penalties:The Tribunal applied judicial discretion in penalties, considering the appellants' bona fide belief in adequate balance in the Pass Book. Citing legal precedents, the Tribunal concluded that penalties should be imposed in cases of deliberate defiance, not in instances of genuine belief in compliance.In the final judgment, the Tribunal upheld the confiscation of goods under Section 111(d) but reduced the redemption fine and set aside the penalty imposed on the appellants, emphasizing the appellants' genuine belief in compliance with the Pass Book terms.