2022 (11) TMI 352 - AT - Customs

Misdeclaration of imported goods - Aluminium Extrusion Scrap (Tread) or Aluminium Tread grade (Aluminium sheet)? - Confiscation - redemption fine - penalty - HELD THAT:- The assessment was made on the basis of the department’s claim and the appellant have paid the duty. The said assessment was not challenged by the appellant therefore at this stage, the classification cannot be conclusively decided. However, for the purpose of redemption fine and penalty, a prima facie view has to be taken on the nature of goods.

From the inspection report, it is observed that the goods was found attached with panel board of Aluminium Sheet or the fresh tradable goods. In this fact, it is found that it cannot be conclusively held that the goods are not Aluminium scrap. From the description such as panel board, it appears that the panel board is made up article of aluminium sheet, the panel board cannot be said to be fresh material or Aluminium sheet. It appears that the said goods is used material therefore, the same can be classified as aluminium scrap however, only a prima facie view is drawn on the nature of the goods at this stage as the classification of goods attained finality with the assessment of bill of entry and the same was not challenged - thus, considering the prima facie view about the goods and in the facts and circumstances of the present case, the redemption fine and penalty imposed by the lower authorities are very excessive and the same deserves to be reduced.

The redemption fine is reduced from Rs.6 lacs to Rs.1 lac and penalty is reduced from Rs.2 lacs to Rs.35,000 - appeal allowed in part.