2017 (1) TMI 5 - AT - Customs

Mis-declaration of imported goods - goods declared were Tesa Electronic Door Locks, whereas goods were Tesa Guest Room Safes - EPCG scheme - carelessness on the part of Commissioner (Appeals) in adjudication process - Held that - On going through the impugned order, we find that the order is cryptic in as much as the Commissioner (Appeals), though set aside the adjudication order and allowed the appeal but did not express his views or given any direction what is to be done after setting aside the order, for this reason also we are of the view that the impugned order cannot sustain - appeal allowed - decided in favor of appellant and against Revenue.

Issues:
1. Appeal against Order-in-Appeal No. 40/2005-MCH dt.17.1.2005 passed by Commissioner of Customs.
2. Mis-declaration of imported goods.
3. Review of the original authority's order.
4. Reassessment of Bill of Entry.
5. EPCG benefit denial.
6. Appeal filed by Revenue before Commissioner (Appeals).
7. Adjudication of the case.
8. Findings of the original adjudicating authority.
9. Appeal before Appellate Tribunal CESTAT Mumbai.

Issue 1: Appeal against Order-in-Appeal
The appeal was directed against Order-in-Appeal No. 40/2005-MCH passed by the Commissioner of Customs (Appeals), New Custom House, Mumbai-I. The Ld. Commissioner set aside the original authority's order and allowed the appeal filed by the Revenue.

Issue 2: Mis-declaration of imported goods
The appellant filed a Bill of Entry for clearance of "Tesa Electronic Door Locks" but the examination revealed 20 pieces of "Tesa Guest Room Safes" instead. The appellant claimed the wrong shipment was due to a mistake by the shipping agent. EPCG benefit was denied, and the Bill of Entry was assessed at a higher duty rate.

Issue 3: Review of the original authority's order
The review found the case to be a clear mis-declaration requiring further investigation, especially regarding the value of the imported goods. The appellant was criticized for dispensing with the show cause notice, and the Revenue filed an appeal before the Commissioner (Appeals), which was allowed.

Issue 4: Reassessment of Bill of Entry
The original adjudicating authority reassessed the Bill of Entry based on the mistake by the shipping agent and the genuine explanation provided by the importer. The reassessment was deemed appropriate as the appellant was not involved in the wrong shipment.

Issue 5: EPCG benefit denial
The goods found in the consignment were not covered by the EPCG license, leading to the requirement for duty assessment on merits. The Bill of Entry needed to be amended and re-assessed accordingly.

Issue 6: Appeal filed by Revenue before Commissioner (Appeals)
The Revenue filed an appeal before the Commissioner (Appeals), which was allowed by setting aside the original authority's order. The appellant challenged this decision before the Appellate Tribunal CESTAT Mumbai.

Issue 7: Adjudication of the case
The adjudicating authority found that the mis-declaration was not deliberate, as the appellant was unaware of the wrong consignment until examination. The mistake was attributed to the shipping agent, and the reassessment was deemed appropriate.

Issue 8: Findings of the original adjudicating authority
The original adjudicating authority's findings were based on the fact that the appellant was not involved in the mis-declaration, and it was a mistake by the shipping agent. The reassessment was considered correct, leading to the appeal being allowed by the Appellate Tribunal.

Issue 9: Appeal before Appellate Tribunal CESTAT Mumbai
After considering the submissions from both sides, the Appellate Tribunal found that the impugned order was cryptic as it did not provide any direction after setting aside the original order. Hence, the impugned order was set aside, and the appeal was allowed.

This comprehensive analysis of the legal judgment highlights the issues involved, the arguments presented by both parties, the findings of the adjudicating authority, and the final decision of the Appellate Tribunal CESTAT Mumbai.

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