2002 (8) TMI 703 - AT - Customs

Summary

Issues:
1. Confiscation of Brass Scrap
2. Imposition of redemption fine and penalty
3. Quality discrepancy in imported goods
4. Mistake at supplier's end
5. Dispute over duty amount
6. Reduction in redemption fine and penalty

Confiscation of Brass Scrap:
The authorities below confiscated 17 MTs. of Brass Scrap due to it not being covered by the bill of entry filed by the appellant-company for clearance of the imported scrap. The additional scrap was of "Honey" quality instead of the "Drink" quality ordered by the appellants. The appellants admitted the mistake of the supplier in loading the wrong type of scrap.

Imposition of Redemption Fine and Penalty:
The authorities imposed a redemption fine of Rs. 1,25,000.00 and a penalty of Rs. 55,000.00 on the appellants. The appellants requested a reduction in the fine and penalty, arguing that the mistake was at the supplier's end. The duty amount was confirmed, and the appellants had already deposited it.

Quality Discrepancy in Imported Goods:
The appellants ordered 20.941 MTs. of Brass Scrap "Drink," but 17 MTs. of the imported scrap was found to be of "Honey" quality, which has a higher value. The Revenue argued that it was unlikely for the supplier to send goods of higher value as a mistake. The appellants did not dispute the duty amount but contested the quality discrepancy.

Mistake at Supplier's End:
The appellants claimed that the mix-up occurred at the supplier's end, but the Revenue argued that there was no evidence to support this claim. The authorities maintained that the mistake seemed improbable and supported the confiscation of the goods and the imposition of the penalty.

Dispute Over Duty Amount:
The duty amount was confirmed against the appellants, and they did not dispute it. The appellants had already deposited the duty and cleared the goods.

Reduction in Redemption Fine and Penalty:
After hearing both sides, the Tribunal confirmed the duty demand but reduced the redemption fine to Rs. 75,000.00 and the penalty to Rs. 35,000.00. The Tribunal believed that the confiscation and penalty were justified due to the quality discrepancy in the imported goods but considered the overall circumstances in reducing the fine and penalty. The appeal was rejected except for the modification in the quantum of the fine and penalty.