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2022 (10) TMI 15 - AT - CustomsReduction in the quantum of redemption fine and penalty - mis-declaration of description of imported goods - rejection of declared value - redetermination of value - confiscation of imported goods - HELD THAT:- In this case, the invoice value was correctly rejected by the Adjudicating Authority for the reason the goods which were imported were completely different from those which were declared. The price declared in the invoice was for LED TVs whereas what were imported were smart LED TVs. Further, what was declared was 740 pieces and what was actually imported was 742 pieces. During investigation, the appellant has submitted five letters to the Department accepting the re-determination of the duty and agreeing to pay the differential duty along with applicable fine and penalty on the re-determined value. It further waived the issuance of the show cause notice. Based on the information and evidence produced in the form of files before the appellant by the officers, the appellant has voluntarily suggested/accepted that the price of smart LED TVs imported by it must be U.S. $ 163 per unit - It is not open for the appellant to question that the price having accepted the same and further having undertaken to pay the differential duty accordingly. Therefore, even the reduction of the assessable value to U.S. $ 147.5 by the Joint Commissioner does not appear to be correct. Nevertheless, this reduction has not been assailed by the Revenue and is said to be based on another value found in another case of M/s Mittal Impex - the redetermination of the assessable value and consequently the determination of the duty liability by the Adjudicating Authority as upheld by the Commissioner (Appeals) in the impugned order is correct and calls for no interference. Confiscation of the goods under section 111 (m) of the Customs Act - HELD THAT:- Any goods which do not correspond in respect of value or in any other particular with the entry made under the Customs Act are liable for confiscation under this section. It is undisputed that both the nature of the goods imported and the quantity of the goods imported did not correspond to the declaration made in this case. Further, the value declared was also much lower and was, even according to the documents produced by the appellant, not the price of smart LED TVs which were imported - there are no infirmity in the confiscation of the imported goods under section 111 (m) or in giving the option of redemption under section 125 by the Original Authority. While fine of Rs. 10,00,000/- was imposed by the Original Authority it was reduced to Rs. 5,00,000/- by the Commissioner (Appeals) in the impugned order. This reduction of fine has not been assailed by the Revenue. We, therefore, find no infirmity in both the confiscation of the goods and also in the imposition of redemption fine of Rs. 5,00,000/-. The specific finding of the Commissioner (Appeals) was that the appellant had, on his own, sought recall of the Bill of Entry and, therefore, had no malafide intention. There is no appeal by the Revenue against this finding. Having found that the appellant had no intention, the Commissioner (Appeals) has still proceed to confirmed a reduced penalty under section 114AA upon the appellant - It is found that this cannot be sustained because once the intention is lacking, no penalty can be imposed upon the appellant under section 114AA. The appeal by the appellant is partly allowed to the extent that the penalty imposed under section 114AA is set aside. The remaining part of the impugned order is, however, upheld - Appeal allowed in part.
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