1999 (8) TMI 429 - AT - Customs

Summary

Issues Involved: Misdeclaration of goods, confiscation of goods, differential duty, imposition of penalties.

Misdeclaration of Goods: The appellant sought clearance of "Mechanical Tuners" but investigation revealed discrepancies in the actual goods imported and their declared value. The supplier had filed an export declaration at Hong Kong Customs for a significantly higher value than declared to Indian Customs. The appellant contested the enhancement of value, attributing the error to a currency misunderstanding by the export clerk. The appellants also challenged the comparison of goods with another importer, asserting differences in product markings and submitting a catalogue for support. They argued that no evidence of misdeclaration was presented and that the declaration as "mechanical tuner" was permissible under import policy.

Confiscation of Goods and Differential Duty: The Customs authorities confiscated the goods under Section 111(m) of the Customs Act, 1962, imposed a redemption fine, demanded differential duty, and levied penalties on the appellant company and its director. The Revenue contended that the misdeclaration was deliberate, with intent to evade customs duty. They argued that the real identity of the goods was concealed, and the explanation of clerical error was not convincing. The Tribunal found that the goods imported were satellite tuners, and the higher value declared in the export declaration was justified. The appellants' misdeclaration was upheld, leading to the confiscation of goods, imposition of penalties, and demand for duty at the higher value.

Imposition of Penalties: The appellants contested the imposition of penalties, claiming that the director had no personal involvement in the misdeclaration. The Tribunal found the penalty on the director unjustified due to lack of evidence implicating him in the misdeclaration. Consequently, the director's appeal was allowed, while the appeal of the appellant company was rejected.

This judgment by the Appellate Tribunal CEGAT, New Delhi addressed issues related to misdeclaration of goods, confiscation of goods, imposition of penalties, and differential duty. The Tribunal found the appellants guilty of misdeclaration, upheld the confiscation of goods, and justified the imposition of penalties and differential duty based on the deliberate attempt to evade customs duty. The director's appeal was allowed due to insufficient evidence of personal involvement in the misdeclaration.