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Issues: Misdeclaration of goods leading to duty demand, confiscation, imposition of fine, and penalty on a public sector company.
In this judgment by the Appellate Tribunal CESTAT, KOLKATA, the main issue revolved around the misdeclaration of goods by a public sector company, which resulted in duty demand, confiscation, and the imposition of fines and penalties. The advocate for the appellant argued that the excess goods were not known to the company and the misdeclaration was not intentional, as the excess goods were supplied with the impugned equipment. However, the Tribunal noted that the company failed to exercise due diligence in declaring all imported goods despite a joint survey. The misdeclaration was only uncovered by the Directorate General of Revenue Intelligence officials, leading to the demand for duty and confiscation of the goods. The Tribunal referred to Section 12(2) of the Customs Act, 1962, emphasizing that even goods belonging to the Government must be treated equally for customs duty purposes. Therefore, the Tribunal upheld the duty demand and confiscation, stating that the company officials were obligated to make a full declaration in the bills of entry. Regarding the fine and penalty, the Adjudicating Commissioner was seen as lenient, imposing only a redemption fine of Rs. 25.00 lakhs for misdeclared goods valued at Rs. 2,21,93,688.00. Despite the leniency, the Tribunal believed that no further reduction in the redemption fine was warranted, especially considering the extent of misdeclaration uncovered by the D.R.I. officials. Consequently, the appeal filed by the appellants was dismissed by the Tribunal, affirming the duty demand, confiscation, and the imposed fine. Overall, the judgment highlights the importance of accurate declaration of imported goods, especially for public sector companies, and underscores the consequences of misdeclaration in customs matters, including duty demand, confiscation, and the imposition of fines and penalties as per the Customs Act, 1962.
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