2017 (12) TMI 903 - AT - Customs

Mis-declaration of description of goods - undervaluation - main ground agitated is that no confiscation can be ordered of the goods without seizing the same - Held that - the imported goods are in the custody of customs till such time the goods are allowed to be cleared. In the present case such clearance has been allowed only after the execution of bonds and bank guaranty, pending adjudication of offence - confiscation for misdeclaration upheld - redemption fine and penalty also upheld - appeal dismissed - decided against appellant.

Summary

Issues:
1. Misdeclaration of imported goods as parts of electrical items.
2. Undervaluation of goods.
3. Confiscation of goods by Customs.
4. Redemption fine and penalty imposed on the appellant.

Analysis:
1. The appellant imported electrical items declared as parts of electrical goods, but Customs found complete induction cookers packed in knocked down condition. Customs officers determined that the goods were misdeclared and undervalued. As per Interpretative Rule 2(a) of the Customs Tariff, the goods were to be assessed as complete induction cookers and valued under section 4A of the Central Excise Tariff Act for charging countervailing duty. The goods were detained by Customs.

2. The appellant voluntarily waived the issue of show cause notice, paid the differential duty, and cleared the goods after furnishing a bond and bank guarantee. Subsequently, the lower Authorities ordered confiscation of the goods, imposed a redemption fine, and penalty. The appellant appealed against this order.

3. The appellant argued that the impugned order was passed without a show cause notice or personal hearing, and there was no provision for confiscation without seizure of goods. The appellant's counsel contended that the redemption fine and penalty should be set aside. The Revenue Department justified the impugned order, stating that the show cause notice and personal hearing were waived by the appellant's Manager, who also paid the demanded duty and furnished a bond and bank guarantee.

4. The Tribunal found that the goods were imported as electrical induction cookers in knocked down form but were actually complete induction cookers. Due to misdeclaration and undervaluation, the goods were liable for confiscation under Section 111 of the Customs Act. The Tribunal upheld the confiscation and imposition of redemption fine and penalty, noting that the appellant had already paid the differential duty and the goods were in Customs custody pending clearance.

5. The Tribunal concluded that the impugned order was upheld, dismissing the appeal. The confiscation of the goods for misdeclaration was deemed valid, and the redemption fine and penalty were considered reasonable and upheld. The Tribunal found no infirmity in the lower Authority's decision regarding the confiscation and penalties imposed.

In summary, the Tribunal upheld the Customs decision to confiscate the goods due to misdeclaration and undervaluation, along with imposing a redemption fine and penalty on the appellant. The appeal was dismissed, affirming the lower Authority's order.