CESTAT allowed the appeal concerning redemption fine and penalty...

CESTAT allowed the appeal concerning redemption fine and penalty imposed for alleged attempt to export unfinished leather through mis-declaration. The appellant was accused of declaring unfinished leather as finished leather to evade duty and claim drawback. The tribunal found that lower authorities relied solely on CLRI test report without establishing whether the leather was actually finished or unfinished, as required under public notice provisions. Crucially, no mens rea for deliberate duty evasion was established, which is prerequisite for proving attempt. The tribunal noted absence of evidence indicating contumacious conduct and referenced precedent where similar circumstances involving variations in mechanical operations or expert-trader grade differences did not constitute deliberate concealment. Consequently, confiscation was deemed unwarranted and unjustified, with redemption fine and penalty being unsustainable.