Contravention of Import and Export Trade Control Regulations on the ground of misclassification.

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....oods imported is allowable as deduction in the computation of income. 2. The problem arises whenever there is contravention of Import and Export Trade Control Regulations on the ground of misclassification. The penalty which an importer may have to pay in a case of this kind is capable of being divided into two categories. When a person imports goods and they are held by the Customs Authorities n....

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.... deliberate violation of the law. As regards fines in lieu of confiscation imposed u/s.125 of the Customs Act, the Customs Authorities fix the quantum of fine after taking into account the relevant factors such as the bonafides of the importer, the margin of profit that an importer can expect to make and such other factors. In cases of bonafide mistakes on classification, the fine in lieu of confi....