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Issues: Mis-declaration of imported goods leading to imposition of penalty and redemption fine.
Analysis: 1. Facts and Background: The appellant imported a consignment of melting scrap, but upon examination, it was found that a portion of the consignment consisted of tor (saria) steel, not heavy melting scrap as declared. The authorities enhanced the value of the tor (saria) steel, demanded differential duty, confiscated the goods, and imposed a redemption fine of Rs. 2 lakhs along with a penalty of Rs. 50,000. 2. Appellant's Submission: The appellant argued that any mis-declaration was unintentional as they relied on the invoice describing the goods as heavy melting scrap. They requested leniency and reduction in the fine and penalty. 3. Respondent's Argument: The Department contended that the misdeclaration was intentional to benefit from lower assessment and avoid paying the correct duty, emphasizing that such actions should not be treated leniently. 4. Judgment: The Tribunal observed that the appellant filed the bill of entry based on the invoice received, which clearly stated the goods as heavy melting scrap. No evidence of intentional misdeclaration was found, although the appellant failed to properly declare the goods. Considering the appellant had already paid the enhanced duty, a lenient view was taken. The redemption fine was reduced to Rs. 1 lakh, and the penalty to Rs. 25,000. The appeal was partly allowed. 5. Conclusion: The Tribunal acknowledged the lack of intentional misdeclaration but criticized the appellant for not ensuring accurate declaration. By reducing the fines and penalties, the Tribunal balanced leniency with upholding the importance of proper declaration of imported goods.
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