2014 (11) TMI 908 - AT - Customs

Confiscation of goods - Redemption fine and penalty - RITC Code and the drawback serial number indicated is not correct - Held that - Description of the goods was found to be correct and it is only the drawback serial number which was found to be incorrect and on being pointed by the Revenue during examination of the goods, the appellant accepted the new drawback serial number. Keeping in view of the above facts, we do not consider it to be a fit case for imposition of redemption fine and penalty. Accordingly, the redemption fine and penalty are set aside - Decided in favour of assessee.

Summary

Issues:
Application for waiver of pre-deposit of penalty under Section 114 of the Customs Act, 1962 and stay of operation of the impugned order.

Analysis:
The appellant filed a Shipping Bill for export of fabrics with a drawback claim under the incorrect serial number. The weight discrepancy was also noted, resulting in a lower amount of drawback. The export goods were confiscated under various sections of the Customs Act, with an option for redemption on payment of a fine and imposition of a penalty. The appellant argued that the goods' description was correct, and the error in the drawback serial number was rectified upon notification by the department. The weight discrepancy was attributed to the method of sale based on length rather than weight, with a minor percentage variance. The Appellate Tribunal observed that the goods' description was accurate, and the appellant promptly corrected the drawback serial number upon notification. Considering these facts, the Tribunal deemed it inappropriate to impose a redemption fine and penalty, setting them aside.

The Tribunal decided that the stay petition and the appeal were allowed based on the above findings, with the redemption fine and penalty being set aside. The judgment was pronounced in court, concluding the matter in favor of the appellant.