2011 (7) TMI 816 - AT - Customs

Refund - Confiscation - DEPB/Drawback - The appellant contested show-cause notice before the adjudicating authority and contended that goods are not liable for confiscation and no penalty is liable to be imposed - There is no dispute that the said consignments were exported and the goods were received by the foreign purchasers and payments were received in India - Held that the discrepancy in the short quantity was found in the ten containers called back, was applied to all the export consignments made - the redemption fine/fines imposed by the adjudicating authority needs to be modified - Decided in favor of the assessee

Summary

Issues:
- Confiscation of goods due to misdeclaration
- Reduction of DEPB/Drawback benefit
- Imposition of redemption fines and penalties
- Appeal against the order of the adjudicating authority

Confiscation of Goods Due to Misdeclaration:
The case involved discrepancies in the quantity declared and the actual quantity found in consignments exported by the appellant company. The Directorate of Revenue Intelligence intercepted the consignments, leading to investigations. The adjudicating authority ordered the confiscation of goods attempted to be exported, along with imposing fines and penalties. The Tribunal upheld the confiscation order, stating that the discrepancies in quantity justified the action taken.

Reduction of DEPB/Drawback Benefit:
The adjudicating authority reduced the DEPB/Drawback benefit available to the appellant based on the revised weight of the exported goods. The Tribunal upheld this decision, finding it appropriate in light of the circumstances of the case and the findings of the authorities.

Imposition of Redemption Fines and Penalties:
The appellant contested the redemption fines and penalties imposed by the adjudicating authority. The Tribunal revisited these fines, considering the specific facts of the case. It modified the redemption fines, reducing them significantly for both the shipping bills with discrepancies in quantity. The penalties imposed on the company and the two directors were also reduced, deeming the original amounts excessive and disproportionate.

Appeal Against the Order of the Adjudicating Authority:
The appellants challenged the order of the adjudicating authority, seeking leniency in the imposition of fines and penalties. The Tribunal carefully considered arguments from both sides, reviewed the records, and made modifications to the redemption fines and penalties. The appeals were disposed of with directions for adjusting the amounts from the appellant's deposits and refunding the balance.

This detailed analysis highlights the key aspects of the legal judgment, including the confiscation of goods, reduction of benefits, imposition of fines and penalties, and the final decision on the appeal against the adjudicating authority's order.