2004 (12) TMI 412 - AT - Customs

Summary

Issues:
1. Appeal against order passed by Commissioner of Customs (Appeals) regarding import of goods without license.
2. Classification of goods under specific headings of EXIM Code.
3. Reduction of fine and vacating of penalty by Commissioner (Appeals).
4. Acceptance of classification by the party and production of Special Import License.

Analysis:
1. The case involves an appeal by the Revenue against an order passed by the Commissioner of Customs (Appeals) regarding the import of goods, specifically Body Foam and Facial Scrub and Wash, without the necessary import license. The goods were confiscated by the original authority as they were found to be classifiable under specific headings of the EXIM Code, making them not freely importable. The original authority imposed a fine and penalty on the party, which was partly allowed by the Commissioner (Appeals), reducing the fine and vacating the penalty. The Revenue appealed against this decision.

2. The issue of classification of the goods under Headings 330730.00 (Body Foam) and 330790.09 (Scrub and Wash) of the EXIM Code was crucial in this case. The party accepted the classification ordered by the lower authorities and proceeded to clear the goods against a Special Import License. The Commissioner (Appeals) took note of this acceptance and reduced the redemption fine while vacating the penalty. The Tribunal found no reason to interfere with this decision, considering the party's voluntary acceptance of the classification and compliance with the Department's requirements.

3. The reduction of the fine and vacating of the penalty by the Commissioner (Appeals) was based on the party's willingness to clear the goods by producing a Special Import License in line with the Department's classification of the goods. The Tribunal affirmed the Commissioner's decision, emphasizing that the party's cooperation and compliance deserved a reasonable reduction in the redemption fine and the removal of the penalty. This approach was deemed appropriate given the circumstances of the case.

4. The acceptance of the classification by the party and their proactive steps to clear the goods by obtaining a Special Import License played a significant role in the Tribunal's decision. By voluntarily complying with the Department's view on the classification of the goods, the party demonstrated good faith, leading to the reduction of the fine and the removal of the penalty by the Commissioner (Appeals). The Tribunal rejected the Revenue's appeal, upholding the Commissioner's decision based on the party's actions and the overall circumstances of the case.