2008 (7) TMI 715 - AT - Customs

Summary

Issues involved:
Import of second-hand machinery, misdeclaration of value, confiscation of goods, imposition of penalty, re-export of goods.

Misdeclaration of value:
The importer had imported second-hand machinery with spare parts and declared the value as EURO 35,876.49 (FOB) based on the supplier's invoice. The local Chartered Engineers confirmed the correct value as EURO 3,19,528.80 (FOB). The Commissioner confiscated the goods under Section 111(m) of the Customs Act and imposed a penalty under Section 112(a). The importer contested the misdeclaration, arguing that the supplier's invoice indicated certification by Spanish Chartered Engineers and that there was no mandatory requirement for a load port Chartered Engineer's certificate. The Tribunal held that misdeclaration was evident as the higher value was known to the importer, leading to the confiscation of goods and imposition of penalty.

Confiscation and penalty:
The Tribunal upheld the Commissioner's decision of confiscation under Section 111(m) due to misdeclaration of value. The fine imposed in lieu of confiscation was reduced from Rs. 15 lakhs to Rs. 10 lakhs, and the penalty was reduced from Rs. 5 lakhs to Rs. 1 lakh. The Tribunal found the original fine to be exorbitant in the circumstances of the case.

Re-export of goods:
The importer requested re-export of the goods, stating that the machines were no longer fit for the intended purpose. The Tribunal directed the adjudicating authority to permit the re-export of the goods, considering the machines' age and condition.

Conclusion:
The appeal was disposed of with the decision to uphold the confiscation and penalty, albeit with reduced amounts. The request for re-export was granted, and the adjudicating authority was directed to facilitate the process.