2002 (5) TMI 615 - AT - Customs

Summary

Issues:
Confiscation of imported fabric, imposition of redemption fine and penalty, misdeclaration of quantity of fabric.

Confiscation and Penalty Imposed:
The Commissioner of Customs confiscated the imported fabric and imposed a redemption fine and personal penalty on the appellants due to a discrepancy in the quantity of fabric imported. The appellants had declared the classification and paid duty accordingly but disputed the quantity issue.

Appellants' Arguments:
The appellants, represented by Shri Sudhir Mehta, contended that the excess quantity of fabric was due to a mistake by the supplier, not them. They had disclosed the discrepancy to the Revenue, as evidenced by the packaging list. The weight of fabric was not required for classification, and any omission was a technical lapse, not mala fide.

Revenue's Position:
The Revenue, represented by Shri T.K. Kar, argued that the discrepancy in fabric width and weightage, leading to excess quantity, was detected during investigation. They believed that the confiscation and penalty were justified to prevent underpayment of duty.

Judgment on Confiscation and Penalty:
The judge, Smt. Archana Wadhwa, found that the appellants had not challenged the classification or duty paid but disputed the redemption fine and penalty. The misclassification did not warrant penal action. Regarding the excess quantity, the mistake was attributed to the supplier, not the appellants, who had promptly informed the Revenue. Citing precedents, the judge ruled that no mala fide intent was proven, leading to the setting aside of the confiscation and penalty.

Precedents and Rulings:
The judge referenced previous cases where importers were not held responsible for supplier errors and noted that the duty was paid on the full quantity imported. The decision emphasized that the appellants did not attempt to evade duty and had cooperated with authorities, justifying the reversal of the confiscation and penalty.

Conclusion:
In conclusion, the judge allowed all six appeals, providing relief to the appellants by setting aside the confiscation and penalty. The stay petitions were also disposed of in favor of the appellants.