CESTAT upheld rejection of the declared value and classification...

CESTAT upheld rejection of the declared value and classification of imported quilted bed spreads, relying on the appellant's admitted misdeclaration, misclassification and undervaluation. The goods were rightly held liable to confiscation under s.111(m) read with s.118 of the Customs Act, 1962. However, considering that the Bills of Entry were filed on the basis of documents received from the foreign supplier and there was no allegation of manipulation of documents by the appellant, the penalty under s.114AA was set aside. The redemption fine was found excessive and reduced from Rs.5 lakhs to Rs.2.5 lakhs. Appeal partly allowed.