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2024 (1) TMI 1127 - AT - CustomsSuppression of facts - Confiscation - redemption fine - penalty - Claim of exemption which was not available - GSL Artemia Brine Shrimp Foods - to be classified under CTH 05119911 or not? - eligibility to avail the preferential rate of IGST under Sl. No. 33 of the Notification No. 002/2017-Cus dated 28.6.2017 - HELD THAT:- It is found that a penalty can be imposed and goods confiscated only if there is a breach of any specific provisions of the Act or law framed there under. What is made punishable under the Customs Act is the 'blameworthy' conduct of the importer. A mere claim of exemption by the importer cannot be visited by confiscation of goods along with fine and penalty. Further, charge of suppression could not have been brought against an importer if he has correctly described the goods in the Bill of Entry as held by the Apex Court in NORTHERN PLASTIC LTD. VERSUS COLLECTOR OF CUSTOMS & CENTRAL EXCISE [1998 (7) TMI 91 - SUPREME COURT]. Since the description of goods and classification done by the importer has been found correct and accepted by the department, it is found that the confiscation of the goods and imposition of fine was improper and merits to be set aside. The question of confiscation of the goods hence does not arise. Having found that the importer-appellant has not violated any provisions of the Act or rules, the penalty imposed upon them is set aside. The Hon’ble Apex Court in ASSOCIATE BUILDERS VERSUS DELHI DEVELOPMENT AUTHORITY [2014 (11) TMI 1114 - SUPREME COURT] held that the principle of judicial approach demands a decision to be fair, reasonable and objective. On the obverse side, anything arbitrary and whimsical would not satisfy the said requirement. The classification of ‘GSL artemia Brine Shrimp Eggs’ under CTH 05119911 along with duty as finalized with respect to Bill of Entry No. 3450978 dated 3.10.2017 is not disturbed - confiscation of the goods and the fine imposed on the goods imported by the said Bill of Entry is set aside - the differential duty demand is set aside - Since no violation of law has been established the penalty imposed on M/s. Priyanka Enterprises is quashed - appeal disposed off.
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