2010 (9) TMI 337 - AT - Customs

Mis-declaration - Appellant suo-moto brought to the notice of the Department about alleged human error in respect of loading of iron welding electrodes in place of Nickel electrodes an after thought - appellant director was totally aware of the happening of the company and that he was involved in mis-declaration of iron electrodes as nickel electrodes with a view to claim higher drawback than what was eligible - Penalties warranted on the appellants

Summary

Issues Involved:

1. Confiscation of goods and imposition of penalties.
2. Alleged mis-declaration of goods and value.
3. Violation of principles of natural justice.
4. Admissibility and relevance of evidence, including cross-examination and retraction of statements.

Detailed Analysis:

1. Confiscation of Goods and Imposition of Penalties:

The original authority ordered the confiscation of 9900 pieces of Denim Jean Pants and 6120 kgs of Iron Welding Electrodes, allowing them to be redeemed on payment of fines. Penalties were also imposed on the appellant company and its director. The Tribunal upheld the confiscation but reduced the redemption fines and penalties, considering the prolonged seizure of goods since 2003.

2. Alleged Mis-declaration of Goods and Value:

The appellant company was accused of mis-declaring the description and value of exported goods to claim excess drawback. The Tribunal found that while Denim Jean Pants are also Woven Trousers, the declared value of Rs. 500/- per piece was not substantiated. The opinion of an expert valuing them at Rs. 70/- per piece was considered approximate. Similarly, the export of Iron Welding Electrodes instead of Nickel Welding Electrodes was deemed deliberate to claim higher drawback, rejecting the claim of human error.

3. Violation of Principles of Natural Justice:

The appellants argued that there was a violation of natural justice due to the denial of cross-examination of Panch witnesses. The Tribunal found no such violation, stating that the seizure of documents and garments was undisputed and conducted in the presence of the appellant's representative and independent witnesses.

4. Admissibility and Relevance of Evidence:

The Tribunal examined the evidence, including the presence of rubber stamps of various parties and customs officers, which were not justified by the appellants. The Tribunal also considered the retraction of the appellant director's statement, finding it vague and unsubstantiated. The appellant's claim of informing authorities about the wrong loading of Iron Welding Electrodes was not supported by acknowledgment, and the letter dated 4-4-2003 was not mentioned in the director's detailed statement on 18-4-2003.

Conclusion:

The Tribunal upheld the confiscation of goods and penalties but reduced the quantum of redemption fines and penalties, taking into account the prolonged seizure and the overall circumstances of the case. The appeals were disposed of with specific reductions in fines and penalties for both the appellant company and its director.