TaxTMI 
TaxTMI 
2026 (2) TMI 1290
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 1057 pieces with value as USD 3065.30 CF. On verification of the container by the custom officers, it was found that it contained 646 pieces of gypsum boards and 137 rolls of fabric/cloth of various colours, materials, designs totally measuring 13,093 meters concealed at the rear end of the container. Accordingly, the said goods along with the relevant documents were seized on the reasonable belief that they are liable for confiscation under the Customs Act, 1962. Samples were also drawn from the 137 rolls of assorted fabrics for testing and after further verification, show-cause notice was issued for rejection of the declared value and for penalizing the appellant for mis-declaration of the imported goods. The Additional Commissioner in t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ement of the fabrics in view of the differences arising consequent to the mahazar dated 10.02.2012 recording the quantity of fabrics as 13,093 meters whereas the mahazar dated 03.07.2012 recorded 15,000 meters and their request was declined. On filing the Writ Petition, the Hon'ble High Court of Karnataka directed Directorate of Revenue Intelligence (DRI) to remeasure the fabrics in the presence of the importer at the cost of the importer and then 3rd Mahazar was drawn and the quantity was found to be 13,195.80 meters. It is further submitted that the appellant is a bona fide importer and was not aware of the actual contents of the container and it filed the bill of entry based on the documents provided by the supplier and hence, there is n....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bric of various colors. Since the above facts are not in dispute, the Revenue has clearly established misdeclaration of goods in terms of quantity and value. 5. The appellant had filed a Writ Petition and the Hon'ble High Court of Karnataka in Writ Petition No.35831/2013 dated 23.09.2013 on observing that the quantity of fabrics in Mahazars dated 10.02.2012 and 03.07.2012 differed, accepting the request of the appellant for remeasurement of the fabrics, directed the Revenue to remeasure the fabrics in the presence of the petitioner. Accordingly, remeasurement of fabrics was undertaken and it was held that the consignment consisted of 646 pieces of Gypsum Boards (6x4 ft.) along with 13195.80 mts. x 57 inches width of linen fabric in 137 r....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the cost of the petitioner. As the quantity of fabrics mentioned in the mahazars dated 10.02.2012 and 03.07.2012 differ, it is appropriate to direct the respondent No. 3 to remeasure the fabrics at the cost of the petitioner, at the time of delivering possession, in the presence of the petitioner, after the petitioner fulfills all the conditions mentioned in the letter dated 18.02.2013." 7. The letter dated 18.02.2013 is reproduced below which has been accepted by the appellant and had disputed only to the extent of quantity of the fabrics. 8. In view of the above and also taking into consideration the fact that the appellant has not disputed the weight of the Gypsum Boards as given in the Trade Declaration, the value redetermined by....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ell as quantity and value. Accordingly, confiscation of goods is upheld, however, taking into consideration the above facts, the impugned order is modified only to the extent of reduction of redemption fine to Rs.3,00,000/- (Rupees Three Lakhs Only) and penalty under Section 112(a)(ii) is reduced to Rs.2,00,000/- (Rupees Two Lakh Only) and all other penalties are set aside. (Order pronounced in Open Court on 26.02.2026.) ============= Document 1 OFFICE OF THE ADDITIONAL COMMISSIONER OF CUSTOMS ICD, WHITEFIELD, BANGALORE - 560 066. Tel: 080-28454417 FAX: 080-28450322 Date 18.02.2013 C.No. VIII/48/107/2012 Gr. 1-3 ICD) To. M/s Gypsum Studio Designs No.730 B, 9th Cross, 5th Main Road M.C. Road Layout, Vijayanagar, Bangalore....
X X X X Extracts X X X X
X X X X Extracts X X X X
....our letter DRI F.No. S/IV/06/2012 dated 08.5.2012 on the above subject. 2. We had taken up the matter with China Customs. China Customs have provided a copy of the trade declaration filed before them in respect of the subject consignment. Comparison of the declarations filed before India Customs vis-Ã -vis China Customs clearly reveals gross mis-declaration of the consignment. In declaration before China Customs, goods were declared as 12000 kgs of Gypsum Boards and 22890 sq. mtrs. of Polyester Fabrics, whereas it was declared as "Gypsum Boards' only before India Customs. Total value declared for the said consignment is USD49969.80. Further, the value declared before China Customs is on FOB basis, therefore, suitable additions for frei....