2005 (8) TMI 474 - AT - Customs

Summary

Issues: Classification of imported goods under Customs Tariff Heading 85.04 or 94.05, Confiscation of goods, Imposition of penalty

Classification of Goods:
The appellants imported goods declared as "Electronic Ballast with housing for Compact Fluorescent Lamps" and claimed classification under Heading 8504.10 under OGL. The goods were assessed based on the description in the Bill of Entry and the Invoice, which led to the completion of the Bill of Entry. The appellants requested a first check examination, which was denied as the Bill of Entry was already completed. The High Court released the goods on payment of duty but without interest. A sample was taken for verification, revealing the goods as lamp fittings with electronic ballasts for holding Compact Fluorescent lamps, classifiable under Customs Tariff Heading 9405.40. A show cause notice was issued proposing confiscation and penalty, leading to confiscation and a penalty of Rs. 5.00 lakhs imposed by the lower appellate authority. The Tribunal upheld this decision, concluding that the goods were lamp fittings containing electronic ballasts, not electronic lamps per se, supporting the classification under Heading 9405.40.

Confiscation of Goods:
The show cause notice dated 13-1-1999 proposed confiscation of the goods due to the restricted import of the item, permissible only with a Special Import Licence. The Additional Commissioner adjudicated the notice, confiscating the goods and imposing a penalty of Rs. 10.00 lakhs, later reduced to Rs. 5.00 lakhs by the lower appellate authority. The Tribunal upheld the confiscation and penalty, emphasizing the classification of the goods as lamp fittings with electronic ballasts under Customs Tariff Heading 9405.40.

Imposition of Penalty:
The penalty of Rs. 5.00 lakhs imposed on the importers was a result of the confiscation of the goods by the Additional Commissioner, upheld by the lower appellate authority and the Tribunal. The penalty was reduced from the initial proposal of Rs. 10.00 lakhs but maintained due to the classification of the goods as lamp fittings containing electronic ballasts under Customs Tariff Heading 9405.40. The Tribunal rejected the appeal, affirming the impugned order and the penalty imposed.

This comprehensive summary of the legal judgment highlights the issues of classification of imported goods, confiscation of goods, and imposition of penalty, providing a detailed analysis of the Tribunal's decision on each issue involved in the case.