2002 (10) TMI 475 - AT - Customs

Issues:
1. Enhanced invoice value of imported items
2. Rejection of prayer for re-export of goods
3. Imposition of fine and penalty under Customs Act, 1962
4. Allegations of mis-declaration in the import process
5. Request for re-export of goods by the importers
6. Defense by the Revenue regarding mis-declaration
7. Consideration of facts and circumstances for re-export permission
8. Application of relevant case laws for re-export permission
9. Imposition and reduction of penalty

1. Enhanced Invoice Value of Imported Items:
The appeal was against an order enhancing the invoice value of items imported by the appellants. The Commissioner of Customs had increased the value and rejected the prayer for re-export, offering redemption on payment of a fine and imposing a penalty under the Customs Act, 1962.

2. Rejection of Prayer for Re-Export of Goods:
The appellants sought permission for re-export due to errors in the declaration made by the Customs House Agent (CHA). Despite the request and supplier's agreement to take back the goods, permission was denied based on alleged mis-declaration, mainly related to spelling mistakes in the goods' names.

3. Imposition of Fine and Penalty under Customs Act, 1962:
A fine of Rs. 5,00,000 was imposed for redemption of goods, along with a penalty of Rs. 1,00,000 under Section 112(a) of the Customs Act, 1962. However, upon review, the penalty was reduced to Rs. 25,000 considering the circumstances and losses suffered by the appellants.

4. Allegations of Mis-Declaration in the Import Process:
The Customs alleged mis-declaration due to incorrect country of origin and spelling errors in the goods' names. The importers argued that the errors were unintentional and should not lead to denial of re-export permission, especially when the quantity was accurately declared.

5. Request for Re-Export of Goods by the Importers:
The appellants consistently requested re-export of the goods, emphasizing the lack of deliberate mis-declaration. They cited case laws supporting re-export permission unless the exporter was involved in fraud or had received payment for the goods.

6. Defense by the Revenue Regarding Mis-Declaration:
The Revenue defended the order, claiming deliberate mis-declaration by the importers. However, the Tribunal found that errors in spelling did not warrant denial of re-export, especially when the supplier agreed to take back the goods.

7. Consideration of Facts and Circumstances for Re-Export Permission:
The Tribunal considered the circumstances, including the lack of payment to the supplier, and concluded that denial of re-export based on spelling errors was unjust. The lower authority's narrow view was criticized, and the Tribunal emphasized the need for fair play and justice.

8. Application of Relevant Case Laws for Re-Export Permission:
The appellants relied on case laws supporting re-export permission in cases of mis-declaration that did not undervalue the goods. The Tribunal referenced legal precedents to justify allowing re-export in this situation, highlighting the importance of fair treatment.

9. Imposition and Reduction of Penalty:
While the appellants were held responsible for the CHA's error, the penalty was reduced to Rs. 25,000 considering the overall circumstances and losses suffered. The Tribunal modified the impugned order, permitting re-export of the goods and adjusting the penalty accordingly.

This detailed analysis of the judgment covers all the issues involved, providing a comprehensive overview of the case and the Tribunal's decision.

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