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2014 (5) TMI 244 - CESTAT KOLKATARate of Duty - Classification of Imported goods – ‘Split betel nuts’ - CTH 0802 8020 or CTHCTH 0812 9090 of the Customs Tariff – Violation of DGFT Notification – Mis-declaration - Liability for Confiscation of imported goods - Reduction of Redemption fine – Suitability for immediate consumption - Whether redemption fine should not exceed the market price of the goods confiscated, less in the case of imported goods, less the duty chargeable thereon – Imposition of Penalty – Held that:- Merely sulfuring, heat treatment etc. for additional preservation, will not alter their classification - Various test reports viz. Plant Quarantine Laboratory in its report dated 03.12.2012 and 27.11.2012 reported that recommended for release (for consumption purpose only) and Central Food Laboratory in its report dated 10.12.2012 mentioned that ‘SO2 present within limit approved for nuts and opined the sample is found not adulterated in respect of tests mentioned above’ - CFL in its report dated 27.01.2014 clarified that ‘conclusively the product was declared safe food’ on the basis of food safety parameters under its rules and regulations, 2011 - The product could only be certified as safe food as u/s 3(q) of the F.S.S. Act, 2006 in which ‘Safe food’ means assurance that food is acceptable for human consumption according to its intended use - These reports have not been challenged by Ld. Advocate. It is found that the sample of the imported goods are not unsuitable for immediate consumption and therefore they would merit classification under CTH 080280 and not under CTH 0812 and chargeable to duty @ 100% BCD and 4% Additional duty - Since the declared CIF value is less than Rs.75/-, their import is not free in view of the DGFT Notification - Accordingly the imported goods are liable for confiscation u/s 111(d) as they are imported in violation of the provisions of D.G.F.T. regulation - They are also liable for confiscation u/s 111(m) as they were mis-classified by assessee along with the mis-declaration regarding their suitability for immediate consumption in the state in which they were imported. The goods were sold @ Rs.70/- to 84/- per kg. and therefore considering the above facts the market price of imported goods works out to Rs.3.00 Crores(approx.) as against the declared CIF value of Rs.2,00,00,524/- declared in the Bills of Entry - The duty involved in the present case has been worked out to be Rs.2,16,00,566/- - Therefore, the order of the adjudicating Commissioner is modified to the extent of reduction in the amount of redemption fine from Rs.1.25 Crore to Rs.1.00 Crore only - As regards the confirmation of the duty and imposition of penalty order of the adjudicating Commissioner is uphold i.e. differential duty of Rs.1,42,09,369/- and penalty of Rs.50.00 Lakhs – Decided partly in favour of assesse.
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