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2019 (5) TMI 1035 - HC - CustomsWaiver of Penalty u/s 111(d) of Customs act, 1962 and redemption fine - Whether the CESTAT has been vested with the discretion to waive the imposition of fine and penalty under mandatory provisions of Section 112(a) and 125 of Customs Act in a case of misdeclaration and misclassification of goods especially when it has upheld that duty liability of the first respondent on such misdeclaration/misclassification? HELD THAT:- It is not in dispute that the order dated 17.04.2003 was passed by the Commissioner as a de nova proceedings pursuant to an order passed by the Tribunal remanding the matter for fresh consideration, vide order dated 14.12.2000. Therefore, it has to be seen as to whether there was any proposal at the first instance for levy of redemption fine. Admittedly, there was no such proposal for levy of redemption fine, as in the understanding of the original authority, the goods were not liable for confiscation, since the goods were not available and having been cleared and duty having been paid, no order of confiscation is possible - the Tribunal rightly deleted the redemption fine imposed on the respondent/importer. Imposition of penalty - HELD THAT:- Admittedly, maximum penalty equivalent to the amount of duty payable has been imposed - taking note of the peculiar facts and circumstances of the case and the dispute being one of a classification dispute, and it is the Department which took a U-turn in the matter after a very long period, when the Department was permitting the respondent/importer to clear the goods by classifying the same under chapter heading 8542, it is not a case where penalty could have been imposed - penalty rightly deleted. The appeal filed by the Revenue stands dismissed and the substantial questions of law are answered against the Revenue.
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