TaxTMI 
TaxTMI 
2025 (12) TMI 717
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....d order] passed by the Commissioner of Customs, Inland Container Depot, Tughlakabad [Commissioner] deciding the proposals made in the Show Cause Notice dated 23.11.2016 [SCN] issued by the Additional Director General [ADG] of the Directorate of Revenue Intelligence [DRI] to Stout and Arjun. 2. None appeared for the appellants. When these appeals were listed on May 1, 2025, Shri Prachit Mahajan, learned counsel sought to withdraw his Vakalatnama. Permission was granted and a notice was directed to be issued to the appellants to engage another counsel indicating that the matter would be listed for hearing on July 3, 2025. On July 3, 2025, office submitted a report that the notices sent to the appellants were returned undelivered. Learned a....
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.... classifiable under CTI 6001 92 00 which attracted a higher rate of duty of 10% or Rs. 100/- per kg whichever is higher. 5. Another container imported by Stout was examined in August 2016 which declared both long pile and cut pile fabrics and the weight was found to be marginally higher at 20,030 kg as opposed to declared weight of 19,365 kg. 6. After completing the investigation, ADG, DRI issued the SCN proposing to classify goods declared as "100% Polyester Knitted cut Pile Fabric under CTI 6001 92 00, confiscate the goods under section 111(l) and (m) of the Customs Act, 1962 [Act] and impose penalties on both Stout and on Arjun. 7. The proposals in the SCN were decided by the Commissioner in the impugned order as follows: ....
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....2. But since the goods have already been released to the above party provisionally, I give an option to the importer to redeem the same on payment of redemption fine of Rs.60,000/- (rupees sixty thousand only). (v) I impose penalty of Rs. Rs. 62,67,816/- (rupees sixty two lakh, sixty seven thousand eight hundred and sixteen only) upon M/s Stout Trading LLP in terms of Section 114A of the Customs Act, 1962; (B) (i) I impose penalty of Rs. 5,00,000/ (Rupees five lakh only) upon Sh. Arjun, partner of M/s Stout Trading LLP under Section 112(a) of the Customs Act, 1962. (ii) I impose penalty of Rs. 2,00,000/- (Rupees two lakh only) upon Sh. Arjun, partner of M/s Stout Trading LLP under Section 114AA of the Customs Act,....
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.... addition to mis-declaring the nature of the goods, the appellants also mis-declared the quantity of the goods which was discovered on examination of the goods; (vi) The appellant also imported several goods which were not declared at all in the Bills of Entry; (vii) In view of the above, the goods were correctly held liable to confiscation under section 111 and penalties were correctly imposed; (viii) The impugned order may be upheld and the appeal may be dismissed. Findings 10. We have considered the submissions advanced by both sides and perused the records. 11. The quantity of the goods was mis-declared in all three containers. In container NYKU 5843774 the declared weight was 7,124 kg while the actua....
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....er long pile fabrics nor looped pile fabrics and hence they fall under 'others'. The 'others' are further sub-classified into 'of cotton' and 'of man-made fibres'. Since the fabrics were made of polyester, they fall under CTI 6001 92 00 as those made of man-made fibres. Therefore, the demand consequent upon such re-classification must also be upheld. We, therefore, find that the impugned order needs to be upheld insofar as the classification of the goods and the consequential demand is concerned. 15. Next is the question of confiscation of the goods under section 111(l) and (m) of the Act. These read as follows: "Section 111. Confiscation of improperly imported goods, etc. - The following goods brought from a place outside India....
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....ed or paid or has been part paid or the duty or interest has been erroneously refunded by reason of collusion or any wilful mis-statement or suppression of facts, the person who is liable to pay the duty or interest, as the case may be, as determined under sub-section (8) of section 28 shall also be liable to pay a penalty equal to the duty or interest so determined: Section 114AA. Penalty for use of false and incorrect material. - If a person knowingly or intentionally makes, signs or uses, or causes to be made, signed or used, any declaration, statement or document which is false or incorrect in any material particular, in the transaction of any business for the purposes of this Act, shall be liable to a penalty not exceeding fiv....