2001 (9) TMI 701 - AT - Customs

Summary

Issues:
- Confiscation of texturised fabrics under Section 111(m) of the Customs Act, 1962
- Allegation of evasion of Customs Duty
- Seizure of goods and imposition of fine and penalty
- Appeal against the redemption fine and penalty

Confiscation of Texturised Fabrics:
The Commissioner of Customs ordered the confiscation of texturised fabrics valued at Rs. 13,17,848 under Section 111(m) of the Customs Act, 1962. The appellant had declared the fabric as non-texturised in the Bill of Entry, but the test report revealed it to be texturised fabric, attracting additional Customs Duty.

Allegation of Evasion of Customs Duty:
The Customs Officers found an alleged evasion of Rs. 11,82,795 of Customs Duty due to misdeclaration of the imported goods. The goods were seized, and proceedings were initiated against the appellant, leading to the decision by the Commissioner as mentioned in the impugned order.

Seizure of Goods and Imposition of Fine and Penalty:
The appellant argued that the seizure of goods was unnecessary as they declared the goods based on the invoice from the foreign supplier. The appellant contended that the seizure resulted in significant demurrage charges, and there was no intention to evade duty. The appellant requested a reduction in the redemption fine and penalty imposed.

Appeal Against Redemption Fine and Penalty:
The appellant's counsel argued that the redemption fine and penalty were too harsh considering the circumstances. The appellant claimed that the practice in Delhi Customs involved testing samples in all cases, indicating no intention to evade duty. On the other hand, the Departmental Representative argued that the redemption fine and penalty were justified due to the value of the goods and the appellant's knowledge of the imported items.

The Tribunal considered the submissions and noted that the goods were tested as per the usual practice in Delhi Customs. The test results were available before the seizure, indicating a lack of intention to evade duty. Considering all factors and Section 125 of the Customs Act, 1962, the Tribunal reduced the redemption fine to Rs. 3 lakhs and the penalty to Rs. one lakh. The appeal was disposed of with the revised fines and penalties.