9911796707
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Issues:
1. Confiscation of goods for attempted export of overvalued garments to claim ineligible drawback. 2. Imposition of redemption fine and penalty under Sections 113(i) and 114(iii) of the Customs Act, 1962. 3. Appeal against the order of the Commissioner regarding the fine and penalty imposed. Analysis: Issue 1: Confiscation of Goods The case involved the attempted export of garments overvalued to claim ineligible drawback. The Commissioner ordered the confiscation of the goods under Section 113(i) of the Customs Act, 1962. The goods were found to be overvalued, leading to the imposition of penalties and fines on the exporting company and an individual associated with the supplier. Issue 2: Imposition of Redemption Fine and Penalty The Commissioner imposed a redemption fine of Rs. 2.5 Lakhs and a penalty of Rs. 1 lakh each on the exporting company and an individual under Section 114(iii) of the Customs Act, 1962. The appellant, the Revenue, filed an appeal challenging the adequacy of the fine and penalty imposed. The Revenue contended that the redemption fine and penalty were too lenient given the gravity of the offense, which involved attempting to defraud the government of a significant amount. Issue 3: Appeal Against Commissioner's Order The appeal filed by the Revenue against the Commissioner's order focused on the grounds of inadequate fine and penalty. The Revenue argued that the redemption fine should have been higher considering the deliberate overvaluation of goods by the exporter. Additionally, the penalty imposed was deemed insufficient given the magnitude of the attempted fraud. The appeal also raised concerns about the market value misdeclaration and the discrepancy between the declared FOB value and the actual market value of the goods. In conclusion, the appellate tribunal upheld the Commissioner's order, rejecting the Revenue's appeal. The tribunal found no grounds to overturn the imposition of the redemption fine and penalty, considering the gravity of the offense and the discrepancies in the valuation of the exported goods. The judgment emphasized the importance of imposing adequate fines and penalties to deter fraudulent practices in export transactions.
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