2012 (5) TMI 228 - AT - Customs

Confiscation - imposing penalties - importer had not included in the Bill of Entry certain other goods viz, Metal Straps, Button Cells, Bazels with Straps and complete wristwatches which were found in 124 cartons - 11041 pieces of wristwatches were not specifically disclosed in the Bill of Entry, 8,64,000 pieces of AAA- Pencil Cell, this item was declared in the Bill of Entry but its value was misdeclared Held that - import of this item was in breach of the relevant provisions of the Exim Policy on account of the fact that these goods did not conform to BIS Standards, confiscation ordered by the Commissioner in respect of the Pencil Cells under Section 111 (d) and (m) of the Customs Act cannot be interfered with. The Commissioner allowed option to re-export this item against payment of fine of Rs 25,000/- Considering the value of the Pencil Cells, reduce the quantum of fine , assessee s appeal is disposed of

Summary

Issues:
1. Misdeclaration of description, quantity, and value of imported goods.
2. Confiscation of goods and imposition of penalties.
3. Appeal against penalties imposed on individuals.
4. Appeal by the importer against the order.

Analysis:
1. The appeals were directed against the Commissioner's order confiscating goods imported by M/s Sunrise Enterprises and imposing penalties on the appellants. The importer had not included certain goods in the Bill of Entry, leading to misdeclaration of description and quantity. Investigations revealed undervaluation of goods, and statements of involved individuals confirmed discrepancies. The Customs authorities proposed action against the importer and individuals for misdeclaration. The Commissioner confiscated goods and imposed penalties, leading to the appeals.

2. The Commissioner ordered the confiscation of goods and imposed penalties on the individuals involved. The penalties imposed were challenged in the appeals. The Tribunal found no valid reason for the penalties imposed on the individuals. Consequently, the penalties on both individuals were set aside. However, the confiscation of goods and imposition of fines were upheld based on the misdeclaration and undervaluation of goods.

3. The appeals by the individuals against the penalties imposed were allowed as no valid reasons were found for the penalties. The Tribunal noted the lack of justification for the penalties and ruled in favor of the individuals, setting aside the penalties imposed on them.

4. The importer's appeal contested the confiscation of goods and imposition of fines. The Tribunal analyzed the evidence, including statements and submissions, and found corroborating evidence indicating the importer's involvement in the misdeclaration. Despite submissions regarding amendments to the Bill of Entry and contemporaneous import prices, the Tribunal upheld the assessable value determined by the Commissioner. The confiscation of undisclosed wristwatches and misdeclared Pencil Cells was upheld, with modifications in the quantum of fines imposed to reflect the value of the goods.

In conclusion, the Tribunal disposed of the importer's appeal with modifications in the quantum of fines imposed, upholding the confiscation of goods based on misdeclaration and undervaluation. The penalties imposed on the individuals were set aside due to lack of valid reasons provided in the Commissioner's order.