2007 (4) TMI 560 - AT - Customs

Summary

Issues involved:
The issues involved in the judgment are misdeclaration of goods, classification under Customs Tariff Heading (CTH), confiscation under Section 111(m) of the Customs Act, imposition of differential duty, redemption fine, penalty under Section 114A, and the role of Custom House Agent (CHA) in declaration of goods.

Misdeclaration of Goods:
The appeal challenged an Order-in-Original regarding the misdeclaration of capacitors imported by M/s. Alstom Transport Ltd. The Commissioner reclassified the goods under CTH 8532.10, leading to a demand for differential duty. The appellants claimed the misdeclaration was inadvertent due to the CHA clerk's error, seeking to set aside the penalty and redemption fine imposed.

Classification under CTH and Confiscation:
The Commissioner held the goods liable for confiscation under Section 111(m) of the Customs Act, reclassifying them under CTH 8532.10. A penalty was imposed on the importer and the CHA. The appellants argued that the penalty was disproportionate and cited case laws emphasizing the need for judicial determination of fines based on market enquiry and discretion.

Role of Custom House Agent (CHA):
The appellants contended that the misdeclaration was due to the CHA clerk's mistake, as the Manager provided the classification without importer instructions. The appellants argued that the CHA was responsible for the error in classification, leading to the imposition of an unduly harsh penalty.

Decision:
Upon review, the Tribunal found that the misdeclaration was not intentional, as the description matched the purchase order placed on the supplier. The Tribunal held that the Commissioner's conclusion of intentional misdeclaration lacked evidence. Citing precedents, the Tribunal vacated the confiscation and penalty, allowing the appeal filed by M/s. Alstom Transport Ltd.