2009 (8) TMI 891 - AT - Customs

Summary

Issues involved:
The issues involved in the judgment are related to the confiscation of goods under Section 111 of the Customs Act, imposition of fine under Section 125, penalty under Section 112, failure to provide an opportunity for hearing as per Section 124, and the request for re-assessment under Section 149 of the Customs Act.

Confiscation of Goods and Penalty:
The appellant imported capital goods and declared them in a bill of entry. Subsequently, they realized an error in the declaration and requested re-assessment to pay the correct duty amount. However, without providing an opportunity for the appellant to be heard as required under Section 124 of the Customs Act, the goods were confiscated, a fine of Rs. 15 lakhs was imposed under Section 125, and a penalty of Rs. 10 lakhs was imposed under Section 112. The Tribunal found no valid reason for confiscation or penalty, as the appellant's request for re-assessment based on existing documents satisfied the requirements of Section 149. The order for confiscation and penalty was set aside, and the appeal was disposed of accordingly.

Failure to Provide Opportunity for Hearing:
The Tribunal noted that the appellant was not given a chance to be heard regarding the proposal for confiscation of goods, which is a violation of Section 124 of the Customs Act. This opportunity for a hearing to the owner of the goods sought to be confiscated was crucial, and its absence in this case was a procedural error. The Tribunal emphasized the importance of following the principles of natural justice and providing a fair hearing before taking such drastic actions like confiscation.

Request for Re-assessment under Section 149:
The appellant had requested re-assessment of the goods due to an error in the bill of entry, where essential particulars were not presented correctly. Although a formal application under Section 149 was not made, the appellant's request for re-assessment based on existing documents was deemed sufficient by the Tribunal. The Tribunal directed the Commissioner to act upon the appellant's request for re-assessment in accordance with the law, allowing the appellant to pay the correct duty amount based on the re-assessment. This decision aimed to rectify the oversight in the initial assessment process and ensure compliance with the Customs Act.