2004 (6) TMI 456 - AT - Customs

Summary

Issues:
1. Valuation of imported goods
2. Contravention of Prevention of Food Adulteration Rules
3. Confiscation of goods under Customs Act
4. Redemption fine and penalty amount

Valuation of imported goods:
The appellants imported Chinese raisins and declared the value as US $1071 PMT CIF. The Port Health Officer found the goods to contravene certain food adulteration rules and revealed that similar raisins were allowed at a higher value at Mumbai Customs House. The Commissioner enhanced the value to US $1730 PMT CIF, which the appellants agreed to without a show cause notice. The Tribunal upheld the Commissioner's decision, stating that the appellants had voluntarily agreed to the value enhancement and admitted the contravention. The Tribunal rejected the argument that the value could not be enhanced based on a stray import at a different port.

Contravention of Prevention of Food Adulteration Rules:
The appellants admitted the contravention of Rules 32(c), (e), and (f) of the Prevention of Food Adulteration Rules. They agreed to rectify the issues by marking the packages with manufacturing and expiry dates before selling the goods. The Tribunal found no reason to interfere with the Commissioner's decision regarding the contravention of PFA Rules and the enhancement of value. The appellants' contentions raised before the Tribunal were not presented during the Commissioner's hearing, leading to the Tribunal's affirmation of the Commissioner's findings.

Confiscation of goods under Customs Act:
The Commissioner confiscated the goods under Section 111(d) and (m) of the Customs Act, 1962. The Tribunal set aside the confiscation under Section 111(m) for misdeclaration of value but confirmed the confiscation under Section 111(d) for admitting the contravention of PFA Rules. The Tribunal clarified that goods are not liable to confiscation under Section 111(m) for misdeclaration of value.

Redemption fine and penalty amount:
The Tribunal reduced the redemption fine from Rs. 2,50,000 to Rs. 50,000 and the penalty from Rs. 50,000 to Rs. 10,000. The appeal was partly allowed based on the findings related to the contravention of PFA Rules, the valuation of imported goods, and the confiscation under the Customs Act.