2008 (6) TMI 516 - AT - Customs

Summary

Issues:
1. Import of Glazed Newsprint and LWC paper in the guise of Standard Newsprint.
2. Attempt to evade customs duty and violate Exim Policy.
3. Confiscation of goods, redemption fine, and penalty imposed.
4. Validity of RNI certificate and appellant's role as an indenter.
5. Justification of penalty and fine amounts.

Issue 1: Import of Glazed Newsprint and LWC paper in the guise of Standard Newsprint
The appellant imported Glazed Newsprint and LWC paper in reels under the guise of Standard Newsprint, attempting to evade customs duty and violate the Exim Policy. The Adjudicating Authority confiscated the goods and imposed penalties due to the misdeclaration and attempted evasion.

Issue 2: Confiscation of goods, redemption fine, and penalty imposed
The Adjudicating Authority confiscated the seized goods and imposed a redemption fine and penalty of Rs. 2,10,000/- and Rs. 1,00,000/- respectively. The Commissioner (Appeals) upheld this decision, leading to the appeal before the Tribunal.

Issue 3: Validity of RNI certificate and appellant's role as an indenter
The appellant argued that the goods were imported based on a valid RNI certificate issued by the Registrar of Newspapers of India, and they were acting as an indenter supplying goods to another party. The appellant claimed that the penalties and confiscation were unjustified, emphasizing the role of the actual user in the import process.

Issue 4: Justification of penalty and fine amounts
After reviewing the facts and submissions, the Tribunal found that the appellants had indeed imported goods without following proper import formalities and payment of duty. The Tribunal acknowledged the appellant's role as an indenter but upheld the confiscation of goods due to the misdeclaration. The Tribunal reduced the redemption fine to Rs. 50,000/- and penalty to Rs. 25,000/-, considering the excessive amounts initially imposed.

In conclusion, the Tribunal upheld the confiscation of goods but reduced the redemption fine and penalty amounts based on the circumstances of the case. The appeal was disposed of with the modified penalty and fine, emphasizing the importance of following import regulations and payment of duties to avoid penalties and confiscation of goods.