2006 (7) TMI 546 - AT - Customs

Summary

Issues: Mis-declaration of imported consignment leading to confiscation and penalty imposition.

In this judgment by the Appellate Tribunal CESTAT, New Delhi, the appellant had imported a consignment of Natural Rubber RSS-I from Miami, but upon analysis by the Rubber Board, it was found to be of RSS-II grade. The adjudicating authority confiscated the consignment due to mis-declaration. The appellant had entered into a contract with the foreign supplier for RSS-I grade, and based on the supplier's documents, filed the bill of entry as RSS-I. The appellant argued that they did not order RSS-II grade and should not be penalized for the supplier's error. The Tribunal found the appellant's contention to be bona fide, noting that the foreign exchange used for payment was returned by the supplier, indicating a mistake on their part. As there was no evidence of the appellant's involvement in the mis-declaration, the Tribunal set aside the confiscation and penalty, allowing the appeal with consequential relief.

The key issue in this case was the mis-declaration of the imported consignment, leading to confiscation and penalty imposition. The Tribunal considered the appellant's argument that they had contracted for RSS-I grade and filed documents based on the supplier's information. The Tribunal found the appellant's position to be genuine, especially as the supplier acknowledged the error and refunded the payment. Since there was no evidence implicating the appellant in the mis-declaration, the Tribunal ruled in favor of the appellant, setting aside the confiscation and penalty. The judgment highlights the importance of genuine intent in import transactions and the consequences of supplier errors on the importer.