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2015 (4) TMI 68 - AT - CustomsDenial of drawback claim - Confiscation of goods - Imposition of redemption fine and penalty - Held that:- It is an admitted position that the brass electrical wiring accessories sought to be exported by the appellant predominantly consists of brass. It also contained certain metal screws which were made of materials other than brass. In order to fall under Entry No. 853802 of the drawback schedule, the item should be made 'wholly' of brass. In other words, it should be of 100% brass and nothing else. Therefore, in the present case, the appropriate classification is Entry No. 853899 which provides for a drawback of 1% of the FOB value of the goods exported. Therefore, the finding of the lower authorities to that extent cannot be faulted - it is not warranted since the goods were made of 90% brass the appellant entertained a bona fide belief that the same merited classification under Entry No. 853802 and accordingly, claimed the drawback benefit. That by itself does not constitute a mis-declaration. The decision of the hon'ble apex Court in the case of Northern Plastic Ltd. vs. Collector of Customs & Central Excise [1998 (7) TMI 91 - SUPREME COURT OF INDIA] case refers. Therefore, confiscation of the goods with an option for redemption and imposition of penalty is clearly unwarranted considering the fact that the appellant is a small-scale manufacturer-exporter of brass items. Accordingly, I set aside the fine and penalty imposed on the appellant. - Decided partly in favour of assessee.
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