2007 (4) TMI 88 - AT - Customs

Confiscation and penalty - Alleged that appellant were imported Pink Energy Drinks for Women but found to be unfit for import to India due to substandard and offending colour and according liable for fine and penalty - Held that appellant is in bonafide belief and reduce the fine and penalty amount

Summary

Issues:
Appeal against order-in-appeal upholding confiscation of goods, redemption fine, and penalty. Import of "Pink Energy Drinks for Women" and "Blue Energy Drinks for Men" from Dubai. Confiscation of "Pink Energy Drinks" due to non-compliance. Appeal based on reliance on supplier's documents. Discrepancy in health certificate and importer information. Bona fide belief in import eligibility. Reduction of redemption fine and personal penalty.

Analysis:
The case involves an appeal challenging the order-in-appeal upholding the confiscation of goods, redemption fine, and penalty imposed on the appellant for importing "Pink Energy Drinks for Women" and "Blue Energy Drinks for Men" from Dubai. The Customs authorities seized the "Pink Energy Drinks" after a report indicated non-compliance with import provisions. The appellant, relying on supplier documents, sought re-export of the non-compliant consignment. The Ld. Commissioner (Appeals) upheld the order citing lack of documents correlating the consignment to the health certificate.

The appellant's advocate argued that the health certificate covered both "Pink" and "Blue" Energy Drinks, with the latter complying with import standards. The discrepancy arose from the exporter's name on the certificate not matching the importer's information. The appellant believed in the certificate's authenticity, demonstrating a bona fide belief in the goods' eligibility for import. The appellant's actions, including seeking re-export upon non-compliance discovery, indicated no mala fide intention or misdeclaration.

Upon reviewing the records, it was evident that the goods were manufactured by Union Beverages Factory, as per the documents. The appellant's belief in the goods' eligibility for import, based on the certificate, was deemed genuine. The Tribunal acknowledged the appellant's good faith and reduced the redemption fine from Rs. 75,000 to Rs. 25,000 and the personal penalty from Rs. 15,000 to Rs. 5,000. Despite the modifications, the appeal was rejected, affirming the reduced penalties.