1999 (11) TMI 580 - AT - Customs

Tribunal Upholds Additional Collector's Decision on Classification & Redemption Fines

NATIONAL INDUSTRIAL WORKS Versus ADDL. COMMR. OF CUS., CHENNAI

The Tribunal dismissed appeals for non-compliance by 11 parties and proceeded with 8 compliant parties, upholding the Additional Collector's decision on ... Import Policy - Confiscation - Stay/Dispensation of pre-deposit Issues:Stay applications and connected appeals arising from Orders-in-Original passed by the Additional Collector of Customs; Compliance with High Court's order regarding bank guarantee and personal bond; Classification of imported goods as 'Tinplate Seconds' or 'Tinplate Waste'; Confiscation of goods under Customs Act; Imposition of redemption fine; Non-compliance of High Court order by certain parties.Analysis:The Tribunal consolidated 19 stay applications and connected appeals based on a common issue from Orders-in-Original by the Additional Collector of Customs. Initially dismissed, the appellants later filed Miscellaneous applications for recall of the order, which was granted, and the matter was listed for fresh hearing. The High Court had directed appellants to furnish bank guarantee for 30% of the redemption fine and execute a personal bond for the remaining 70%, with goods to be released upon compliance.Out of the 19 appellants, only 8 complied with the High Court's order. The appellants had imported Tinplate waste under ITC Policy but authorities classified it as seconds quality. The Additional Collector held the goods liable for confiscation under Customs Act sections and imposed redemption fines. The appellants argued against the classification and requested a reduction in redemption fines due to being actual users without intent to evade duty.The Department defended the procedure, citing evidence supporting the classification and justifying the redemption fines. They argued that the Additional Collector's decision was based on valid evidence and lenient considering penalties. For the 11 non-compliant parties, the Department sought dismissal of appeals and stay applications.After careful consideration, the Tribunal dismissed appeals for non-compliance by 11 parties and proceeded with the 8 compliant parties. The Tribunal upheld the Additional Collector's decision based on technical literature and ISI specifications, reducing redemption fines for the 8 parties. The judgment modified the redemption fines for the 8 parties and dismissed appeals for non-compliance by the other 11 parties.In conclusion, the appeals and stay applications were disposed of accordingly, with the judgment detailing the modifications to redemption fines for the 8 compliant parties and the dismissal of appeals for non-compliance by the remaining 11 parties.