2004 (7) TMI 432 - AT - Customs

Summary

Issues:
1. Determination of the country of origin of imported goods
2. Levying of anti-dumping duty
3. Confiscation of goods under Sections 111(d) & 111(m) of the Customs Act, 1962
4. Imposition of penalty under Section 112 of the Customs Act, 1962

Issue 1: Determination of the country of origin of imported goods

The case involved the import of Telesun Brand Dry Cell Pencil Battery from Thailand, declared as of Thailand origin. The Customs found similarities with a Chinese brand, leading to suspicion. The appellants did not provide the original manufacturer's invoice, citing the foreign supplier's refusal. The Commissioner concluded the goods were of Chinese origin, imposing anti-dumping duty, confiscation, and penalties. The appellants argued the evidence supported Thailand origin, challenging the Commissioner's findings.

Issue 2: Levying of anti-dumping duty

The Commissioner levied anti-dumping duty on the goods, citing Chinese origin based on circumstantial evidence. The appellants contended the burden to prove Chinese origin lay with the Revenue, citing case laws emphasizing the Revenue's responsibility to establish origin. The Tribunal noted the lack of concrete evidence proving the goods were of Chinese origin, referencing previous judgments emphasizing the need for conclusive proof before imposing duties.

Issue 3: Confiscation of goods under Sections 111(d) & 111(m) of the Customs Act, 1962

The Commissioner ordered the confiscation of goods under Sections 111(d) & 111(m) of the Customs Act, 1962, allowing redemption on payment. The appellants argued against confiscation, asserting compliance with import regulations and lack of evidence supporting Chinese origin. The Tribunal found no grounds for confiscation, as the Revenue failed to establish Chinese origin conclusively, thereby nullifying the need for redemption.

Issue 4: Imposition of penalty under Section 112 of the Customs Act, 1962

Penalties were imposed on the appellant-company and its proprietor. The appellants contested the penalties, citing compliance with regulations and lack of contravention. They referenced case laws to support their argument against penalties. The Tribunal agreed with the appellants, setting aside the penalties due to the absence of violations and finding no justification for penal action.

In conclusion, the Tribunal ruled in favor of the appellants, setting aside the Commissioner's order. The Tribunal found insufficient evidence to support the imposition of anti-dumping duty, confiscation of goods, and penalties. The judgment highlighted the Revenue's failure to establish Chinese origin conclusively, leading to the dismissal of duties and penalties.