2008 (11) TMI 469 - AT - Central Excise

Summary

Issues: Misdeclaration of imported goods, Duty evasion, Confiscation of goods, Reduction of redemption fine and penalty

In this case, the Appellants imported Tin plate sheets declaring them as Electrolytic Tin Plates (Prime Grade) attracting a lower duty rate of 5% BCD. However, a detailed examination revealed that the sheets were actually of Secondary Tin plates, subject to a higher duty rate of 20% BCD and requiring an import license. The Commissioner confiscated the goods valued at Rs. 35,10,876 but allowed redemption upon payment of a fine of Rs. 4,25,000 and imposed a penalty of Rs. 80,000. The Appellants admitted to misdeclaration due to urgency and demurrage costs. The Advocate argued that reliance on the second examination report was unjustified and requested setting aside the Commissioner's order or reducing the fine and penalty.

The Departmental Representative contended that the misdeclaration aimed to evade customs duties and license requirements. The Mill Test Certificate submitted was issued by the Trader, not the Mill, and the declared price was significantly lower than that of prime materials, indicating secondary grade import. The Tribunal noted the substantial price difference, the invalidity of the Mill Test Certificate, and the Appellants' admission of misdeclaration, considering it a deliberate act rather than an error.

The Tribunal upheld the duty demand but reduced the redemption fine from Rs. 4,25,000 to Rs. 1,50,000 and the penalty from Rs. 80,000 to Rs. 50,000, taking into account the value of the goods and the duty evasion amount. The judgment highlighted the seriousness of misdeclaration and the need for appropriate penalties while acknowledging the request for leniency in the fine and penalty amounts due to the circumstances.