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Issues involved: Import of Palm Kernel Fatty Acid Distillate (PKFAD) misdeclared as RBD Palmolein, differential duty confirmation, confiscation, penalty, reliance on evidence, correctness of Commissioner's order.
Analysis: 1. Misdeclaration of goods and differential duty confirmation: The case involved a consignment of Palm Kernel Fatty Acid Distillate (PKFAD) which was misdeclared as RBD Palmolein. The Adjudicating Authority confirmed a differential duty of Rs. 4,42,395 due to the misdeclaration. The appellate authority upheld the decision, leading to an appeal before CESTAT, Bangalore. The Tribunal remanded the matter back to the Adjudicating Authority for further consideration, directing the provision of test results and submission review. Despite a personal hearing and test report provision, the Adjudicating Authority reaffirmed the importer's liability for the differential duty and imposed penalties and confiscation. The Commissioner (A) later partially allowed the appeal by reducing the redemption fine and penalty, leading to the Revenue's appeal against this decision. 2. Reliance on evidence and correctness of Commissioner's order: The Revenue contended that the Commissioner (A) erred in relying on fresh evidence presented during the appeal process, specifically a letter from the supplier stating that 5 drums of RBD Palmolein were mistakenly loaded. The Revenue argued that the letter was unsigned and an afterthought, with no further evidence provided regarding the correct stock at the supplier's end. The Commissioner (A), however, found merit in the supplier's letter, noting that the payment was made for the entire consignment as PKFAD and that the mistake was due to the supplier's error. The Commissioner (A) reduced the redemption fine and penalty based on this evidence. CESTAT, after reviewing the submissions and records, upheld the Commissioner (A)'s decision, emphasizing the presence of the supplier's letter in the initial records and the lack of contradictory evidence from the Revenue regarding payment for RBD Palmolein. In conclusion, CESTAT rejected the Revenue's appeal, affirming the correctness and legality of the Commissioner (A)'s order based on the evidence presented and the absence of contradictory evidence from the Revenue. The decision highlighted the importance of considering all available evidence and the need for substantial proof to challenge findings in customs cases.
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