2017 (5) TMI 81 - AT - Customs

Mis-declaration of description - Appellant declared the goods as Prime CRGO Electrical Steel Sheet in Coils and Slit Coils - The inspection team found that the goods were secondary grade and not prime CRGO Coils of different dimensions and not eligible to the benefit of exemption granted under N/N. 21/02? - Held that - there is no record to prove that the goods imported were prime in character. In absence of any rebuttal by the appellant before the authority below mis-declaration of description and value was established - confiscation redemption fine and penalty upheld - appeal dismissed - decided against appellant.

Summary

Issues involved: Mis-declaration of goods description and value, imposition of redemption fine and penalty

Mis-declaration of goods description and value:
The appellant claimed to be a buyer of goods in a high seas sale, covered by specific Bills of Entry. However, upon physical examination, it was found that the goods were of secondary grade and did not match the declared description of Prime CRGO Electrical Steel Sheet in Coils and Slit Coils. The inspection team confirmed the mis-declaration, and the appellant did not challenge the test report. The Tribunal noted the absence of evidence proving the imported goods were prime in character, leading to the establishment of mis-declaration of description and value due to the appellant's failure to rebut the findings before the adjudicating authority.

Imposition of redemption fine and penalty:
The appellant, acknowledging the mis-declaration, sought a reduction in the redemption fine and penalty imposed. The Tribunal, however, highlighted that the appellant did not come forth with clean hands due to the deliberate mis-declaration of goods description and value. The goods, valued at Rs. 1,43,83,728/-, were confiscated due to the breach of law. The Tribunal upheld the imposition of a redemption fine of Rs. 15,00,000/- and a penalty of Rs. 5,00,000/-, deeming them reasonable based on the customs' valuation, which indicated the transaction value as the basis for the fines. The Tribunal concluded that the penalties were justified considering the prejudice to the customs' interest, leading to the dismissal of the appeal and confirmation of the fines and penalties imposed.

In summary, the judgment addressed the issues of mis-declaration of goods description and value, leading to the imposition of redemption fine and penalty. The Tribunal found the appellant's failure to provide evidence of the goods' prime quality, confirming the mis-declaration. The fines and penalties imposed were upheld as reasonable based on the customs' valuation, indicating the transaction value as the basis for the penalties.