2002 (7) TMI 717 - AT - Customs

Summary

Issues: Classification of imported goods, Limitation and penalty, Imposition of redemption fine, Quantum of penalty

Classification of imported goods:
The Appellate Tribunal resolved a difference of opinion by following the Supreme Court's decision in a specific case to classify the goods imported by the appellant under Heading 49.06 of the Customs Tariff Act, 1975, and subject to duty under Heading 98.03.

Limitation and penalty:
The issue of limitation and penalty was addressed in light of a Supreme Court ruling where it was established that wilful misstatement and suppression could lead to an extended period of limitation for demanding differential duty. The Tribunal found the Customs authorities justified in invoking the extended period due to the circumstances of the case.

Imposition of redemption fine:
The appellant argued against the imposition of a redemption fine, stating that no goods were detained or confiscated. The Tribunal considered the circumstances and agreed that a redemption fine was not warranted in this case.

Quantum of penalty:
Regarding the quantum of penalty, the Tribunal noted that a significant duty amount had been demanded, but considering the circumstances and the duty liability if the goods were imported as air cargo, the penalty was reduced. The penalty was reduced to Rs. 1 crore for the company and Rs. 10 lakhs for the Managing Director, partially allowing the appeal.

In summary, the Tribunal clarified the classification of imported goods, addressed the issues of limitation and penalty based on relevant legal precedents, decided against imposing a redemption fine, and reduced the quantum of penalty after considering the circumstances and duty liability if the goods were imported differently.