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2014 (7) TMI 19 - AT - CustomsConfiscation of goods - Redemption fine and penalty - Mis declaration of goods - Whether there was misdeclaration of goods admitted to be exported - Declaration of Non basmati rice as basmati rice - Held that:- Attempt to export non-basmati rice came to record, when the preliminary examination was conducted, that was corroborated by the testing laboratory report dated 12.02.2009. 6 days there after when the appellant would apprehend that the proceeding shall be initiated under section 111 and 114 of Customs Act 1962, it sent a letter to the Commissioner pleading ignorance and finding fault with the workers. Such plea does not have basis, since the appellant did not come out with clean hands to inform the authority before 12.02.2009. That proved misdecaration of the description of goods. Once such misdeclaration is established section 113 shall apply for confiscation of the goods. The authority accordingly, granted redemption option to the appellant. But the said authority has not recorded the value of the non-basmati rice attempted to be exported for determination of redemption fine and penalty. Therefore, we ascertain from the appellant as to the value of the said goods. It is explained that the value shall be Rs.1,50,16,320/-. Considering 10% profit margin, the redemption fine is reduced to Rs.15.00 Lakhs. So far as the penalty of Rs.20.00 Lakhs under section 114 (i) is concerned, invoking of the said section is proper. That rules out applicability of section 114 AA of Customs Act 1962. It may be stated that the appellant took a risk in attempting to export non-basmati rice and there shall be no sympathy for any reduction in penalty. However, considering that the appellant has admitted the misdeclaration, to reduce the litigation, the penalty is reduced to Rs.15.00 Lakhs - Decided partly in favour of assessee.
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