2008 (5) TMI 600 - AT - Customs

Waiver of - Bill of Entry re-assessed and fine/penalty imposed on appellants for misdeclaration of imported garments

Summary

Issues:
1. Import of goods declared as mutilated and fumigated, but found to be old and used garments.
2. Assessment of fine and penalty without issuance of show-cause notice or personal hearing.
3. Appellants' compliance with payment of fine and penalty.
4. Failure to appeal against assessment orders.
5. Request for adjudication order denied by Custom House.
6. Dismissal of appeal by lower appellate authority due to absence of adjudication order.

Analysis:
1. The case involved the import of goods that were declared as mutilated and fumigated by the appellants. However, upon inspection, it was discovered that the consignments actually contained old and used garments that were not mutilated or fumigated as declared. This discrepancy led to the assessment of fines and penalties against the appellants, which they duly paid.

2. Despite the lack of a show-cause notice or a personal hearing, the appellants voluntarily paid the fines and penalties along with the duty without insisting on formal procedures. This voluntary compliance can be interpreted as a waiver of their right to notice and hearing, as they did not challenge the assessment orders or appeal against them within the prescribed time limit.

3. Subsequently, the appellants sought an adjudication order from the Custom House regarding the issue. However, their request was denied due to the significant delay in raising the matter. This delay in pursuing the adjudication order further complicated the situation.

4. The lower appellate authority dismissed the appeal filed by the appellants on the grounds of the absence of a formal adjudication order. Given the appellants' actions and omissions, including the payment of fines without contesting the assessment orders and the delay in seeking an adjudication order, the lower appellate authority's decision was upheld, and the appeal was rejected.

5. In conclusion, the appellate tribunal found that the appellants had effectively waived their right to notice and hearing by voluntarily paying the fines and penalties without challenging the assessment orders in a timely manner. The denial of the request for an adjudication order due to the delay further weakened the appellants' position, leading to the dismissal of their appeal by the lower appellate authority.