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2006 (5) TMI 215 - AT - Central Excise
Issues: Classification of imported goods under Customs Tariff, claim for exemption under Notification No. 21/2002, imposition of penalty and redemption fine, mis-declaration by the importer, amendment to bill of entry, mala fide intentions of the importer.
Classification and Exemption Claim: The appellants imported Mould Doctor with accessories from Korea and classified the goods under Customs Tariff heading 8453.9090, claiming concessional duty under Notification No. 21/2002. However, upon examination, it was found that the goods were tools with multi-purpose use, not specifically for leather footwear as claimed. The goods were reclassified under heading 8461.9000, leading to the imposition of a fine and penalty by the adjudicating authority. Imposition of Penalty and Redemption Fine: The appellants contested the penalty and redemption fine, arguing that they had filed an amendment to the bill of entry, which should have been accepted. They relied on legal precedents to support their claim that penalty cannot be imposed solely based on a wrong classification claim. The Revenue contended that the appellants deliberately mis-declared the goods to claim an incorrect exemption, leading to the confiscation and penalty imposed by the adjudicating authority, a decision upheld by the Commissioner (Appeals). Analysis and Decision: The judge noted that while an amendment to the bill of entry can be filed before assessment, the appellants were aware of the nature of the imported goods and intentionally claimed the wrong exemption. The judge distinguished previous cases where classification changes were made after testing samples, unlike in this case where the appellants knowingly mis-declared the goods. The judge found the appellants' actions to be mala fide, leading to the correct imposition of penalty and confiscation. However, considering the circumstances, the redemption fine was reduced from Rs. 50,000 to Rs. 25,000. The appeal was rejected with the modified redemption fine.
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