2019 (6) TMI 1532 - AT - Customs

Valuation of imported goods - over-valuation - ladies garments - mis-declaration of description of goods in the shipping bills (for availing excess Drawback) - amendment of shipping bills sought - rejection of declared value - Confiscation - redemption fine - penalty - HELD THAT - The proceedings were initiated against the appellant on the ground that it had mis-declared the value as well as description of goods for availing excess drawback amount. Thus, ordered for confiscation of goods covered under the disputed shipping bills in terms of Section 113 (i) ibid is sustainable. However, the appellant itself had sought for amendment of the shipping bills with regard to the descriptions and value of goods and based on the information submitted by it, the FOB value was re-determined by the department. Further, it is also noticed that the goods in question were allowed for exportation on the basis of request made by the appellant. Thus, under the circumstances of the case, the amount of redemption fine and penalty can be reduced in the interest of justice. Appeal allowed in part.

Summary

Issues: Mis-declaration of goods leading to confiscation, amendment of shipping bills, determination of redemption fine and penalty.

In this case, the appellant had filed shipping bills describing goods inaccurately, leading to misdeclaration of value and description for availing excess drawback amount. The department initiated proceedings and ordered confiscation of goods under Section 113(i) of the Customs Act, 1962. However, the appellant later requested amendments to the shipping bills, which were allowed, and the FOB value was re-determined by the department based on the new information provided. The goods were ultimately allowed for exportation based on the appellant's request. Considering these circumstances, the Tribunal found that the redemption fine and penalty imposed could be reduced in the interest of justice. Consequently, the Tribunal partially allowed the appeal by modifying the impugned order, reducing the redemption fine from &8377; 6 Lakhs to &8377; 2 Lakhs and the penalty from &8377; 4 Lakhs to &8377; 1 Lakh. The appeal was disposed of accordingly.