2001 (11) TMI 856 - AT - Customs

Summary

Issues:
- Mis-declaration of country of origin in import documents
- Liability to pay duty, interest, and penalties
- Correct calculation of duty amount
- Imposition of penalties based on mala fide intention

Mis-declaration of Country of Origin:
The appellants imported Acrylic Staple Fibre from Thailand but declared Taiwan as the country of origin in the bills of entry to evade anti-dumping duty. The mis-declaration was admitted by one of the appellants in a statement under the Customs Act. The Commissioner confirmed the duty demand and penalties due to the violation of Notification No. 81/97-Cus. The appellants contested the duty calculation and claimed to have paid excess duty. The Tribunal found that the goods were indeed of Thailand origin, leading to a violation of the duty terms.

Liability to Pay Duty, Interest, and Penalties:
The appellants had already deposited the entire duty amount, which was not disputed. The adjudicating authority confirmed the duty demand under the Customs Act and imposed penalties on the appellants. The Tribunal noted that the appellants acted in good faith based on information from their supplier. The penalties were set aside considering the appellants' cooperation and deposit of the duty amount voluntarily.

Correct Calculation of Duty Amount:
The appellants contended that the duty, including anti-dumping duty, was incorrectly calculated. They claimed to have paid excess duty and requested a re-calculation based on the prevailing rates at the time of import. The Tribunal agreed with the appellants and directed the adjudicating authority to re-calculate the duty amount and adjust any excess paid by the appellants.

Imposition of Penalties Based on Mala Fide Intention:
The Tribunal found no evidence to justify the imposition of penalties. It noted that the appellants relied on information provided by their supplier regarding the country of origin. The appellants cooperated with the authorities, deposited the duty amount, and took steps to rectify the mis-declaration. Considering the facts and circumstances, the Tribunal concluded that there was no mala fide intention on the part of the appellants and set aside the penalties imposed under Section 112(a) of the Customs Act.

In conclusion, the impugned order was modified, and the matter was remanded to the adjudicating authority for re-calculation of the duty amount. The penalties imposed were set aside, and the appeals of the appellants were disposed of accordingly.