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Issues:
1. Waiver of predeposit and stay of recovery of penalty imposed under Section 112 of the Customs Act, 1962 on an importer for misdeclaration of imported goods. Analysis: The case involved an appeal seeking waiver of predeposit and stay of recovery of a penalty of Rs. 1 lakh imposed on an importer under Section 112 of the Customs Act, 1962. The importer, M/s. P.A. Footwear Pvt. Ltd., imported sewing machines with inbuilt motors, misdeclaring them as sewing machines to claim an inadmissible exemption from additional duty of customs. The Commissioner found the importer liable for confiscation under Section 111(m) of the Act and imposed a penalty under Section 112. The differential duty was confirmed, a fine was imposed, and a penalty of Rs. 1 lakh was levied on the importer. The importer argued that the misdeclaration was unintentional, as the description of the goods was copied from the commercial invoice and packing list submitted with the Bill of Entry. They claimed to have followed clearance formalities as per Public Notice No. 242/98, and that the misdeclaration did not provide any undue benefit. The importer contended that misclassification of goods was a departmental function and cited case law to support their position. The departmental representative argued that the importer knowingly made a wrong claim for an exemption not applicable to the imported goods. They stated that the correct description of the goods was known to the importer, and the misdeclaration was not accidental. However, they acknowledged that goods assessed under the second check system were examined at the docks, and the packing list clearly showed the presence of motors in the consignment. After considering the facts and submissions, the judge found that the importer's misdeclaration did not conclusively prove deliberate intent to evade duty. The judge noted that the description entered in the Bill of Entry made it difficult to detect the misdeclaration in the EDI system. It was ordered that there would be a complete waiver of predeposit and stay of recovery of the penalty imposed on the importer until the final disposal of the appeal. The decision was pronounced on 4-12-2008.
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