2017 (2) TMI 1263 - AT - Customs

Misdeclaration of value of imported goods - Held that - The appellant has imported three types of mobile phones and declared the MRP for all the three models as ₹ 1599/-. However, at the time of examination of the goods the customs authorities found that the MRP declared on the packages were different from the MRP declared by the appellant for the three models. We note that the goods have been examined on second check i.e. after the Bill of Entry has been assessed on the basis of the declaration filed by the importer. Consequently, the charge of misdeclaration stands established - appeal dismissed - decided against appellant.

Summary

Issues: Misdeclaration of MRP on imported mobile phones, confiscation of goods, redemption fine, imposition of penalty.

Analysis:
1. The appellant imported mobile phones from Hong Kong and declared an MRP of ?1599 for three models, but customs authorities found the actual MRPs on the packages to be higher. The original authority ordered confiscation of goods under Section 111(m) of the Customs Act, 1962, and imposed a redemption fine of ?11,50,000 and a penalty of ?35,000 under Sections 125 and 112(a) respectively.

2. The appellant challenged the fine, penalty, and redemption fine, claiming the discrepancy in MRPs was due to a mistake by the supplier. The appellant's counsel argued for setting aside the redemption fine and penalty based on this claim, while the Revenue's representative supported the lower authorities' decision, stating that the importer advises the supplier on MRPs, making the misdeclaration the importer's responsibility.

3. The Tribunal noted that the goods were examined after the Bill of Entry was assessed based on the importer's declaration, confirming the misdeclaration. Consequently, the misdeclared goods were liable for confiscation under Section 111(m) of the Customs Act, leading to the imposition of redemption fine and penalty. The Tribunal upheld the original order, dismissing the importer's appeal on 17-2-2017.