2003 (9) TMI 792 - AT - Customs

2016 (3) TMI 1139 - AT

Issues Involved:

1. Confiscation of goods under Section 111(m) of the Customs Act, 1962.
2. Imposition of redemption fine under Section 125 of the Customs Act, 1962.
3. Demand of duty under proviso to Section 28(1) of the Customs Act, 1962.
4. Imposition of penalty under Section 114A of the Customs Act, 1962.
5. Imposition of penalty under Section 112(a) of the Customs Act, 1962.
6. Penalty on the Managing Director under Section 112(a) of the Customs Act, 1962.
7. Adjustment of payment made towards differential duty and enforcement of PD Bond and Bank Guarantee.

Detailed Analysis:

1. Confiscation of goods under Section 111(m) of the Customs Act, 1962:
The Commissioner had ordered the confiscation of goods valued at Rs. 14,58,842/- under Bill of Entry No. 36803 dated 14.7.97. The Tribunal found that only goods valued at Rs. 3,68,064/- were not declared to customs and thus, only these goods were liable for confiscation under Section 111(m). The order of confiscating the entire consignment valued at Rs. 14,58,482/- was reduced accordingly.

2. Imposition of redemption fine under Section 125 of the Customs Act, 1962:
The Commissioner had imposed a redemption fine of Rs. 1,50,000/-. The Tribunal reduced the redemption fine to Rs. 85,000/-, considering that only goods valued at Rs. 3,68,064/- were liable for confiscation.

3. Demand of duty under proviso to Section 28(1) of the Customs Act, 1962:
The Commissioner had demanded a duty of Rs. 16,73,368/- from M/s. Comptech Electronics Pvt. Ltd. Chennai. The Tribunal directed that no duty should be charged on goods that were confiscated but not redeemed. The duty demand was to be adjusted accordingly, and a refund was to be granted for the excess amount paid.

4. Imposition of penalty under Section 114A of the Customs Act, 1962:
The Commissioner had imposed a penalty of Rs. 2,48,409/- under Section 114A. The Tribunal reduced this penalty to Rs. 1,25,000/-, considering the circumstances and the submissions made by the appellants.

5. Imposition of penalty under Section 112(a) of the Customs Act, 1962:
The Commissioner had imposed a penalty of Rs. 3,00,000/- for goods imported prior to 28.9.96. The Tribunal confirmed this penalty, finding it appropriate under the circumstances.

6. Penalty on the Managing Director under Section 112(a) of the Customs Act, 1962:
A penalty of Rs. 1,00,000/- was imposed on the Managing Director, Shri Vikas Chandra. The Tribunal found this penalty to be on the higher side and reduced it to Rs. 25,000/-.

7. Adjustment of payment made towards differential duty and enforcement of PD Bond and Bank Guarantee:
The Commissioner had ordered that the payment of Rs. 14,00,000/- made by M/s. Comptech Electronics P. Ltd., Chennai be adjusted for the differential duty amount, and the PD Bond and Bank Guarantee be enforced for recovery of balance duty, fine, and penalty. The Tribunal directed that the duty should not be charged on goods that were confiscated but not redeemed, and a refund should be granted for the excess amount paid.

Conclusion:
The Tribunal modified the order of the Commissioner by reducing the redemption fine, adjusting the duty demand, reducing the penalties imposed under Sections 114A and 112(a), and confirming the rest of the order. The impugned order was sustained with these modifications.

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