2005 (9) TMI 555 - AT - Customs

Summary

Issues involved: Import of goods without specific licence, confiscation under Customs Act, penalty under Customs Act, quantum of redemption fine.

Import of goods without specific licence: The appellants imported 'silk lining for leather gloves' without a specific import licence. Customs authorities classified the goods under ITC-HS Heading No. 5007200.90, requiring a specific licence for import. The goods were sought to be confiscated under Section 111(d) of the Customs Act and the importer penalized under Section 112 of the Act.

Confiscation and penalty: The Commissioner of Customs confiscated the goods under Section 111(d) of the Customs Act and allowed redemption against a fine of Rs. 3.00 lakhs. Additionally, a penalty of Rs. 10,000/- was imposed on the importer under Section 112 of the Customs Act.

Quantum of redemption fine: The appellant challenged the quantum of redemption fine, arguing that it did not reflect the leniency expressed by the Commissioner in the order. The Commissioner had acknowledged that the goods were imported by the actual user-cum-exporter for export only, without any bad intent. Considering these circumstances, the Tribunal reduced the redemption fine from Rs. 3.00 lakhs to Rs. 50,000/-. The penalty of Rs. 10,000/- imposed by the Commissioner was deemed reasonable and upheld.

Decision: The Tribunal modified the impugned order to reduce the redemption fine to Rs. 50,000/-, while upholding the penalty of Rs. 10,000/-. The appeal was disposed of accordingly.