2013 (8) TMI 236 - AT - Customs

Confiscation of Goods department found excess quantity of Aluminium Scrap on the first check basis in the consignment as against declared quantity by the assessee the goods were confiscated by the department - Held that - the orders of both the lower authorities cannot be faulted with and are upheld - the confiscation of such quantity by the lower authorities under the provisions of Section 111(m) is in accordance with the law - The excess quantity which was found in the consignment is of approximately 17 MTs of Aluminium Scrap as against the declared quantity - there was no reason for interference in such situation It was also to be noted that when there was a confiscation u/s 125 - the consequences thereto as of imposition of redemption fine and penalties follow. Bonafide belief Held that - The claim of the assessee entertaining a bonafide belief, needs little consideration, in as much as the appellant could have been guided by the pre-shipment certificate issued by the NQAQSR, who are authorised to issue said pre-shipment inspection certificate under the provisions of Foreign Trade Policy - the said certificate also indicates that there was a 100% examination of cargo - little leniency is required on the imposition of redemption fine and penalty appeal decided with modifications and partly in favour of assessee.

Summary

Issues: Mis-declaration of goods, confiscation under Customs Act, 1962, imposition of penalty, bonafide belief of the appellant.

The judgment pertains to an appeal against an order regarding mis-declaration of goods during import. The appellant had imported goods declared as Cast Iron Scrap & Aluminium Scrap but was found to contain excess Aluminium Scrap. The adjudicating authority ordered confiscation under Section 111(m) of the Customs Act, 1962 and imposed penalties. The first appellate authority upheld the order, leading to the present appeal.

The main issue in the case was the excess quantity of Aluminium Scrap found during examination compared to the declared quantity. The appellant did not dispute the excess quantity but contested the value assessment and claimed a bonafide belief in the declaration. The Tribunal noted the undisputed excess quantity and upheld the confiscation under Section 111(m) of the Customs Act, 1962, along with the imposed penalties, finding no reason for interference.

Regarding the bonafide belief claimed by the appellant, the Tribunal considered the pre-shipment certificate issued by the authorities. It noted the 100% examination of cargo as indicated in the certificate, showing that the appellant could have been guided by it. The Tribunal decided to show leniency in the imposition of redemption fine and penalty due to these circumstances.

In conclusion, the Tribunal modified the redemption fine to Rs.2,00,000/- and the penalty to Rs.75,000/- to ensure justice in the case. The appeal was disposed of with these modifications.