2011 (7) TMI 646 - AT - Customs

Penalty and confiscation - Overvaluation of Stainless steel - mis-declared the quantity of goods to claim excess DEPB amounting to Rs.2,20,386 - confiscation & redemption fine 25,00,000 imposed - Held That - We reduce the redemption fine to Rs.5,00,000/-, penalties to Rs.2,00,000/- on the appellant-company and Rs.1,00,000/- on the Director. If the appellants are failed to pay the redemption fine and penalties (reduced) within thirty days on receipt of this order, the order of Commissioner (Appeals) shall be operative.

Summary

Issues:
Appeal against order confiscating goods and imposing fines and penalties under Customs Act, 1962.

Analysis:
The judgment involves an appeal against an order confiscating goods and imposing fines and penalties under the Customs Act, 1962. The case revolves around the appellants mis-declaring the quantity of goods to avail excess Duty Entitlement Pass Book (DEPB) benefits. The key personnel of the appellant-company were identified as playing a role in this misdeclaration. The goods were seized, released under a bond, and subsequently exported. The adjudication resulted in the confiscation of the goods, imposition of a redemption fine of Rs.25,00,000, and separate penalties on the appellant firm and its Director. The appeal challenges the quantum of the redemption fine and penalties rather than contesting the merit of the case.

The appellants argued that the misdeclaration was not intentional but a mistake by the Director. They sought a reduction in the redemption fine and penalties based on a previous Tribunal decision that substantially reduced fines and penalties in a similar case. On the other hand, the Respondent argued for stern action due to the appellants being habitual offenders. The Respondent contended that the penalties and fines imposed were reasonable given the circumstances. The Tribunal considered the arguments and past decisions, noting that the value of the goods involved in this case was significantly lower than in previous cases where fines were reduced. The Tribunal, therefore, reduced the redemption fine to Rs.5,00,000 and penalties to Rs.2,00,000 on the appellant-company and Rs.1,00,000 on the Director.

In conclusion, the Tribunal disposed of the appeals by reducing the fines and penalties based on the circumstances and past decisions. It was emphasized that failure to pay the reduced fines and penalties within thirty days would render the order of the Commissioner (Appeals) operative. The judgment highlights the importance of considering past precedents and the specific facts of each case in determining the appropriate fines and penalties under the Customs Act, 1962.