2013 (9) TMI 780 - HC - Customs

Imported Goods Redemption Fine Penalty - Revenue intercepted the imported goods declaring the same to be worn clothes and the value Held that - The order passed by the Commissioner as well as the Tribunal was set aside to the extent of the redemption fine and the penalty and the Commissioner was directed to assess the redemption fine and the penalty in the light of the circular dated 26th July, 2010 upon giving an opportunity to the petitioner to submit the relevant documents and also a personal hearing and shall make all endeavours to complete the exercise of determination within three weeks from the date of the communication of this order. Circular No. 22/2010-Cus., dated 26th July, 2010 concerning the import of the worn clothing which suggests that the import of the worn clothing should not be adjudicated and fine in lieu of confiscation and penalty imposed keeping in view the margin of profit on such unauthorized import should not get cleared by paying only nominal fine and penalty in future. The Court had not gone into the merit of the matter and the said authority shall be at liberty to decide the matter in accordance with law without being swayed by any observations made.

Summary

Issues:
Interception of imported goods, show cause notice for declaration, classification of goods, redemption of goods on payment, modification of tribunal order, withholding goods for non-payment, circular on worn clothing import, applicability of circular, assessment of redemption fine and penalty.

Interception of Imported Goods:
The Director of Revenue Intelligence intercepted the goods imported by the petitioner, declared as worn clothes, without a detailed breakup of the consignment in the import documents.

Show Cause Notice and Classification of Goods:
A show cause notice was issued to the importer for not declaring the detailed breakup of the consignment. The Commissioner of Customs rejected the classification and declared a higher value, offering redemption on payment of a fine and penalty.

Tribunal Order Modification:
The tribunal modified the Commissioner's order, specifying no interference in other import proceedings and increasing the value from USD 0.45 to USD 0.60 per kg. The petitioner sought release of goods based on the modified order.

Withholding Goods for Non-Payment:
Customs authorities refused to release goods, citing lack of indication in the tribunal order for payment. The petitioner applied for modification, but the tribunal rejected it, stating no apparent mistake for interference.

Circular on Worn Clothing Import:
The petitioner referenced Circular No. 22/2010-Cus., emphasizing clearance after fumigation and payment of fumigation costs by importers, suggesting nominal fines for worn clothing import.

Assessment of Redemption Fine and Penalty:
The High Court set aside the Commissioner's and tribunal's orders regarding redemption fine and penalty, directing assessment as per the circular, allowing the petitioner to submit relevant documents and have a personal hearing within three weeks.

Conclusion:
The High Court did not delve into the case's merits, granting authorities the freedom to decide in accordance with the law. The urgent certified copy of the order was to be provided to the parties upon application.