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Issues: Classification dispute between CSH 3005.90 and CSH 3805.40, non-possession of import license, confiscation of goods, imposition of redemption fine and penalty, request for reduction in fine and penalty.
In this case, the appeal was filed against Order-in-Appeal No. 116/99 passed by the Commissioner of Customs (Appeals), Chennai, concerning the classification dispute of imported goods. The appellants imported Ultra Swipe Canister and Super Swiper Pouches, with the Revenue arguing for classification under CSH 3005.90 while the appellants contended for CSH 3805.40. It was noted that the appellants did not possess a license for the import of the goods. The impugned order upheld the Revenue's classification, along with the confiscation of goods and imposition of redemption fine and penalty. The appellants paid the redemption fine and penalty, incurred demurrage, and discovered that 95% of the goods had deteriorated upon clearance, leading to their destruction. The appellants requested a reduction in the fine and penalty due to the circumstances. Upon careful review of the case records, it was observed that the appellants genuinely believed the goods fell under CSH 3805.40, leading to their failure to apply for a license. Given that 95% of the goods deteriorated upon release, the Tribunal deemed it appropriate to reduce the fine to Rs. 1 lakh. As the dispute stemmed from an interpretation of the Customs Tariff without any malicious intent, the imposition of a penalty was deemed unwarranted, resulting in the setting aside of the penalty. The appeal was allowed in the manner specified, with the operative part of the order pronounced in open court on 16-9-2005.
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