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2019 (1) TMI 1289 - AT - CustomsClassification of imported goods - Low Aromatic White Spirit (ANYSON-5) in bulk (Laws) - Appellants have claimed the classification under heading 27101990 whereas Revenue has sought them to classify under 27101290 - Held that - The issue is decided in appellant own case VENUS PETROCHEMICALS (BOMBAY) PVT LTD. VERSUS C.C. KANDLA 2019 (1) TMI 82 - CESTAT AHMEDABAD , where it was held that the product imported by the appellant answers to specifications prescribed under sub heading note 4 and therefore, would fall under the description light oils and preparations of sub heading 2710.12. The confiscation of goods upheld but the redemption fine imposed is reduced from ₹ 82,00,000/- (as imposed by the adjudicating authority) to ₹ 40,00,000/- - For various contraventions leading to confiscation of goods appellants have been held liable for penalty under Section 112(a). Ahmedabad Bench has reduced the penalty form ₹ 35,00,000/- (as imposed by the adjudicating authority) to ₹ 25,00,000/- - appeal allowed in part.
Issues involved: Classification of imported goods under different headings, violation of Import Export Policy, confiscation of goods, redemption fine, penalty under Customs Act.
Classification of Goods: The appeal concerns the classification of imported goods, specifically "Low Aromatic White Spirit (ANYSON-5) in bulk (Laws)." The appellants claim classification under heading 27101990, while the Revenue argues for classification under 27101290. Although the duty rates are the same under both headings, the Importer-Exporter Code (IEC) requirements differ significantly. Goods classified under 27101990 are freely importable, while under 27101290, they are restricted and reserved for import through specified public sector undertakings (PSUs). Violation of Import Export Policy: The Adjudicating Commissioner classified the goods under 27101290, stating that they were imported in violation of the Export Import Policy as restricted goods. Consequently, the goods were held liable for confiscation under Section 111(d) of the Customs Act, 1962, and were confiscated under Section 125. The Commissioner allowed the appellants to redeem the goods upon payment of a redemption fine of ?82,00,000. Penalties Imposed: For various contraventions leading to the confiscation of goods, the Commissioner held the appellants liable for a penalty under Section 112(a)(i) of the Customs Act, 1962, imposing a penalty of ?54,00,000. The appellants argued that a previous decision by the Ahmedabad Bench of the Tribunal favored them, reducing the redemption fine and penalty amounts significantly. However, the Authorized Representative for the Revenue contended that the issue was identical and should be decided in favor of the Revenue. Judgment: The Tribunal considered the submissions of both parties and noted that the Ahmedabad Bench had previously decided against the appellant, classifying the goods under CTH 27101290. The Tribunal upheld this classification and the confiscation of goods under Section 111(d). Following the Ahmedabad Bench's order, the Tribunal reduced the redemption fine from ?82,00,000 to ?40,00,000 and the penalty from ?54,00,000 to ?25,00,000. The Tribunal upheld the order of the adjudicating authority with the modifications mentioned, disposing of the appeal accordingly.
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