2008 (9) TMI 800 - AT - Customs

Summary

Issues: Mis-declaration of imported goods, confiscation of goods, imposition of penalty, responsibility of high sea buyers, Section 111(m) and 119 of the Customs Act

In this case, the appellant filed a Bill of Entry for imported goods as HMS scrap but upon examination, additional items were found. The original authority held mis-declaration and ordered duty payment on a higher value, confiscation under Section 111(m), and a fine with a penalty. The appellant argued lack of knowledge as high sea buyers but accepted the value enhancement. The SDR contended that high sea buyers must correctly declare goods as per Section 46(4) of the Act. The Tribunal found clear mis-declaration due to the presence of Polythene granules not resembling scrap, justifying confiscation under Section 111(m). However, they were not convinced of concealment under Section 119.

Regarding the issues, the Tribunal upheld the value enhancement and differential duty demand. They reduced the redemption fine from Rs. 1,50,000 to Rs. 60,000 and the penalty from Rs. 75,000 to Rs. 30,000. The appeal was disposed of with these adjustments, emphasizing the responsibility of high sea buyers to accurately declare imported goods and the consequences of mis-declaration under relevant sections of the Customs Act.