2013 (8) TMI 543 - AT - Customs

Misdeclaration or mistake assessee contended that there was no misdeclaration but only for the mistake the spare parts were considered to be mis declared goods by Customs - Held that - Court approve the adjudication as to the redemption fine and penalty was confirmed - Mis-declaration is patent from record for which so far as the consequence of bill of entry was concerned penalty was reduced to some extent appeal allowed partially.

Summary

Issues: Misdeclaration of goods; Arbitrary adjudication; Penalty imposition

The judgment deals with a case where spare parts were considered misdeclared goods by Customs due to a mistake, leading to an adjudication that the appellant claims to be arbitrary. The appellant argued that there was no misdeclaration, but the Customs found that not only washing machines but also spare parts were imported. The bill of entry revealed misdeclaration, leading to the imposition of a penalty and redemption fine. The appellant admitted to the misdeclaration and deposited the differential duty. The adjudicating authority found the misdeclaration to be evident and confirmed the redemption fine and penalty of Rs.5,00,000/- and Rs.1,00,000/-, respectively, for the specific bill of entry.

Regarding the penalty of Rs.10,00,000/- imposed for misdeclaration in five earlier consignments under different bill of entries, the Tribunal acknowledged the established misdeclaration but opted to reduce the penalty to Rs.7,50,000/- for maintaining proportionality. The reduction was based on the directive that the appellant should pay a penalty of Rs.1,50,000/- against each bill of entry previously cleared. Consequently, the total penalty amount was reduced from Rs.10,00,000/- to Rs.7,50,000/-. The Tribunal allowed the appeal to the extent of the penalty reduction, emphasizing the importance of proportionality in penalty imposition for misdeclaration of goods.

In conclusion, the judgment upholds the imposition of penalties and redemption fine for misdeclaration of goods, affirming the adjudication consequences based on the evidence presented. The Tribunal's decision reflects a balance between acknowledging the misdeclaration and ensuring that the penalty imposed is proportionate to the offense committed, thereby demonstrating a fair and reasoned approach in addressing the issues raised in the case.