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2011 (1) TMI 60 - AT - CustomsDemand of duty - Appellants imported declared stainless steel scrap of grade 304 whereas the majority of the goods were found stainless steel sheets and strips - the Commissioner has confirmed the duty by revising classification of the goods and by enhancing the assessable value appellant submits that almost 50% of duty was paid by them at the time of filing of bill of entry by treating the consignment as scrap - goods are liable to confiscation on the ground of mis-declaration demand confirmed as not contested - confiscation of the goods (stainless steel sheets and strips as well as scrap) also upheld Appeal disposed off
Issues: Duty confirmation on mis-declaration of imported goods, confiscation of goods, penalty imposition, reduction of penalty quantum.
In this case, the Commissioner confirmed a duty of Rs.8,69,005.20 on imported goods, declared as stainless steel scrap of grade 304, but were mostly stainless steel sheets and strips. Out of the total quantity of 19.691 MT, 14.540 MT were found to be stainless steel sheets and strips. The Commissioner revised the classification of the goods and increased the assessable value. The goods were confiscated with an option for redemption by paying a fine of Rs.4 lakhs, and a penalty of Rs.1 lakh was imposed under Section 112 of the Customs Act, 1962. The appellant's advocate did not dispute that the consignment contained stainless steel sheets and strips. Although not contesting the duty confirmed, the advocate argued that they had paid almost 50% of the duty at the time of filing the bill of entry by treating the consignment as scrap. The advocate claimed that the differential duty owed was Rs.4,46,000 and requested a reduction in the redemption fine due to this payment. Upon hearing the arguments, the Tribunal confirmed the demand as uncontested and upheld the confiscation of the goods, including both stainless steel sheets/strips and scrap. However, considering the appellant's plea, the Tribunal reduced the penalty from Rs.4 lakhs to Rs.2.50 lakhs. The original penalty of Rs.1 lakh was deemed reasonable and was left unchanged. The appeal was disposed of with the revised penalty quantum of Rs.2.50 lakhs, maintaining the duty confirmation and confiscation of the goods.
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