TaxTMI 
TaxTMI 
2013 (4) TMI 624
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....f Central Excise & Customs (Appeals), Nashik. 2. The facts relevant for consideration of this case are as follows : 2.1 The appellant, M/s. Starlite Components Ltd., Nashik imported Energy Efficient Lighting Fixtures (Portable lamps working on dry battery) Torch of various models under Bill of Entry No. 5529072 dated 21-12-2011. The examination of the import consignment carried out by the Customs Officers revealed that the product is fully functional and electrically charged and is in retail packing. As the consignment is intended for retail sale and the goods have been notified under the provisions of the Legal Metrology (Packaged Commodities) Rules, 2011 they directed the appellant to declare the retail sale price on the g....
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.... indicated in the show-cause notice and also confiscated the goods with an option to the importer to redeem the same on payment of a fine of Rs. 20 lakhs and also imposed a penalty of Rs. 10 lakhs on the appellant under Section 112(a) ibid. The party preferred an appeal before the Commissioner of Customs (Appeals), who found that the differential duty short paid is only Rs. 4.56 lakhs and, accordingly, he observed that the penalty of Rs. 10 lakhs is harsh and he reduced the penalty from Rs. 10 lakhs to Rs. 2 lakhs. Both the Revenue and appellants are before us. 3. The Revenue's case is against the reduction in imposition of penalty. Whereas the appellant's case is that they are registered with the Central Excise department....
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.... manufacture. He further refers to Rule 3 of Legal Metrology (Packaged Commodities) Rules, 2011 wherein it has been provided that the provisions of Chapter 2, which are applicable to the packages intended for retail sale, does not apply to packaged commodities meant for industrial consumers or institutional consumers. As per explanation (ii) to the said Rule, "industrial consumer" means the consumer who buys packaged commodities directly from the manufacturer for use by that industry. He also produced a copy of the clarification issued by the Directorate General of Foreign Trade vide Policy Circular No. 38 (RE-2000)/1997-2002 dated 22-1-2001 wherein it was clarified that the labelling requirements as mentioned in para 4 of the Notification,....
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....Customs Act, penalty that can be imposed on dutiable goods which are liable to confiscation is only an amount not exceeding the duty sought to be evaded or Rs. 5,000/- whichever is greater. Therefore, the imposition of penalty of Rs. 10 lakhs by the adjudicating authority is clearly contrary to the law and, therefore, the reduction in penalty ordered by the lower appellate authority of penalty cannot be faulted at all. Thus, there is no merit in the Revenue's appeal and the same is liable to be dismissed. 8. As regards the appeal of the importer, the declaration of MRP for the purpose of levy of CVD is required only when there is a statutory requirement under the Legal Metrology (Packaged Commodities) Rules, 2011 to declare on the p....