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2023 (7) TMI 596 - AT - CustomsLevy of penalty under section 112(a) of CA and redemption fine of Rs. 175,000 on conveyance - Old and used clothes cleared by misdeclaring the same as Mix Mutilated Rags - Appellant claims it to be a mistake committed by employee - HELD THAT:- The submission made by the appellant that goods i.e. “Old and used clothes” cleared by misdeclaring the same as Mix Mutilated Rags appeared due to mistake of employee is untenable as clearing in DTA at the relevant time would have normally brought a good profit to the appellant as the Foreign Trade Policy at the relevant time had made the Old and Used clothes as the restricted item and working in SEZ environment where checks and examination are kept at the minimum, greater care on the part of the appellant was warranted. Therefore, the Commissioner (Appeals) has rightly, relying upon the decision of the Apex Court in PINE CHEMICAL SUPPLIERS VERSUS COLLECTOR OF CUSTOMS [1992 (9) TMI 111 - SUPREME COURT] held that the goods are misdeclared, Section 112 gets attracted. This is specially so, when violation are accepted by the concerned party. Accordingly, the penalty under Section112 (a) is sustainable, however, the same is reduced to Rs. 1,00,000/-. Accordingly, the penalty under Section 112(a) is sustained but stands reduced to Rs. 1,00,000/-, similarly, the redemption fine of Rs. 35,000/- each on five truck clearing , carrying goods when intercepted is also reduced to Rs. 10,000/- each from Rs. 35,000/-, as the truck were not offending goods, per se - It is made clear that apart from above, the other elements of duty and penalty etc. were not contested before this court. Appeal allowed in part.
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