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Issues: Misdeclaration of imported goods, classification under Customs Tariff, denial of exemption, confiscation of goods, imposition of penalties
In this case, the issue revolved around the misdeclaration of imported goods by M/s. Vikram Traders, where goods imported under a DFRC license were found to be different from the declared description. The imported goods, identified as corduroy fabrics, were not in line with the quality, technical characteristics, and specifications required under the relevant notification. The misdeclaration led to a show-cause notice proposing recovery of CVD, denial of exemption, duty recovery, confiscation of goods, and imposition of penalties on the importers and other appellants. The Commissioner of Customs adjudicated the notice, confirming the duty demand, confiscating the imported fabrics, and imposing significant penalties on the involved parties based on the misdeclaration and misuse of the DFRC license. The Tribunal upheld the misdeclaration of goods, emphasizing that cotton grey fabrics and cotton corduroy fabrics are distinct, falling under different Chapter Headings and having different characteristics. The imported goods did not match the specifications required by the DFRC license, leading to the correct classification under the Customs Tariff and the subsequent confiscation of the goods. The Tribunal also affirmed the denial of the exemption from duty payment under Notification No. 90/2004 due to the misdeclaration. Therefore, the confiscation, duty demand, and penalties on M/s. Vikram Traders were upheld by the Tribunal. Regarding the penalties imposed on M/s. Sri Krishna, the sister concern of M/s. Vikram Traders, and individuals involved, the Tribunal found them liable due to their awareness of the misdeclaration and misuse of the DFRC license. Statements and actions of the General Manager and Director indicated their involvement in the scheme to evade customs duty. While sustaining the penalties, the Tribunal reduced the amounts imposed on M/s. Sri Krishna, Shri Shivashankar, and Shri Y.M. Vinay based on the circumstances of the case. The Tribunal dismissed one appeal while partly allowing others, concluding the matter with the pronouncement of the operative portion of the order on the specified date.
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