2000 (4) TMI 285 - AT - Central Excise

Tribunal Upholds Confiscation of Imported Goods, Denies Reclassification, and Reduces Penalty

The Tribunal upheld the confiscation of imported goods, a diesel generating set and pre-heat coils, under sub-heading 8502.12 of the Customs Tariff Act ... Appeal - New plea - Confiscation of goods and penalty Issues:Classification of imported goods under the Customs Tariff Act, requirement of a valid import license, confiscation of goods, imposition of redemption fine and penalty.Classification of Goods:The Appellants imported a second-hand diesel generating set and new pre-heat coils. The Deputy Collector of Customs confiscated the goods, citing a violation of sub-heading 8502.12 of the Customs Tariff Act. The Appellants argued that the goods were industrial, not consumer items, and had not been misdeclared. They sought a nominal redemption fine and no penalty. The Commissioner of Customs upheld the confiscation but reduced the fine and penalty. The Tribunal rejected the Appellants' request to classify the goods under a different heading, as they had initially classified them under 8502.12. The Tribunal confirmed the confiscation due to the requirement of a valid import license for the imported generating set.Redemption Fine and Penalty:The Tribunal considered the value of the goods and upheld the redemption fine of Rs. 2 lakhs, deeming it reasonable. However, based on the Adjudicating Authority's findings that the Appellants were actual users and had not misdeclared the goods, the penalty was reduced from Rs. 10,000 to Rs. 2,000. The Tribunal concluded that, except for this modification, the appeal was rejected.Miscellaneous Application:The Appellants filed a Misc. application to raise an additional submission or classify the goods under a different heading. The Tribunal rejected the application, stating that the Appellants could not introduce a new classification after initially agreeing to the classification under sub-heading 8502.12. The Tribunal upheld the decision to confiscate the goods under the original classification and affirmed the redemption fine while reducing the penalty.