2008 (2) TMI 692 - AT - Central Excise

Summary

Issues involved: Appeal against order imposing redemption fine and penalty under Customs Act.

Summary:
1. Facts of the case: The appellant, engaged in sale and manufacture of Copper and Copper Alloys, imported Copper Scrap 'Barley' which was found to violate Circular of CBEC. Goods were cleared at a place not designated for such imports, leading to confiscation, redemption fine, and penalty under Customs Act.

2. Appellant's arguments: Appellant argued no contraband material was found, no suppression or misstatement occurred, and they were unaware of the un-shredded state of the scraps. Appellant contended that the Circular restrictions were related to the place of import, not discharge, and there was no intention to evade duty.

3. Judgment: The Tribunal acknowledged the administrative nature of the Circular issued in the wake of safety concerns. Despite no intent to evade duty, the appellant violated the Circular by clearing goods at an unauthorized location. The Tribunal rejected the plea of appellant's ignorance of the regulations and reduced the redemption fine and penalty based on precedents and circumstances of the case.

4. Precedents: The Tribunal distinguished a previous case and found similarities with another case, leading to the decision to reduce the redemption fine and penalty amount.

5. Decision: The impugned order was modified, reducing the redemption fine to Rs. 2 lacs and penalty to Rs. 50,000. The appeal was allowed in these terms.