2013 (9) TMI 703 - AT - Customs

Confiscation of goods penalty u/s 114 redemption fine - goods cleared were found to be Calcium Hydrogen Phosphate (Dibasic) a cheap chemical and value was highly inflated Held that - Confiscation of goods exported previously was not justified as the goods were not available samples were drawn for testing and it was ascertained that the goods exported is Calcium Hydrogen Phosphate (Dibasic) in the form of white powder as against the declared description of Calcium Hydrogen Phosphate Anhydrous GR grade - redemption fine set aside - decided partly in favour of assessee.

Summary

Issues:
1. Valuation of exported goods
2. Confiscation and redemption fine
3. Penalty under Section 114 of the Customs Act, 1962

Valuation of exported goods:
The case involved the export of consignments under a specific description, which was later found to be different upon investigation. The authorities seized a consignment and refixed its value, along with the values of previously exported consignments. The adjudicating authority determined that the goods were Calcium Hydrogen Phosphate (Dibasic) instead of the declared Calcium Hydrogen Phosphate Anhydrous GR Grade, with an inflated value. Samples were tested, confirming the discrepancy. The appellant firm admitted to the higher valuation of goods. The Tribunal held that the confiscation of previously exported consignments was unjustified due to unavailability of the goods, leading to the setting aside of the redemption fine of Rs.50,000. The impugned order was upheld with this modification.

Confiscation and redemption fine:
The officers seized a consignment and confiscated it, refixing the value at a lower rate against the declared value. Additionally, the values of 11 previously exported consignments were also refixed, with a redemption fine imposed on the appellant. The Tribunal found that the confiscation of the previously exported consignments was not justified due to unavailability of the goods. As a result, the redemption fine of Rs.50,000 was set aside. The impugned order was upheld with this modification.

Penalty under Section 114 of the Customs Act, 1962:
The adjudicating authority imposed a penalty of Rs.1 lakh on the proprietorship firm under Section 114 of the Customs Act, 1962. However, the Tribunal's decision did not specifically address the penalty in the judgment provided. The focus of the Tribunal's decision was primarily on the valuation of goods and the confiscation issue, with the penalty not being explicitly mentioned in the final disposition of the appeal.

This detailed analysis of the judgment highlights the issues of valuation of exported goods, confiscation and redemption fine, and the penalty under Section 114 of the Customs Act, 1962, providing a comprehensive overview of the Tribunal's decision in the case.