2019 (1) TMI 1321 - AT - Customs

Misdeclaration of imported goods - LPG Genset - case of Revenue is that the appellant had declared the consignment LPG Generator but in fact imported Gasolene (petrol) Driven Generator - Held that - The learned Commissioner observed that even though there is no substantial violation of the Policy, however, the declaration furnished by the importer is not correct, therefore, the goods imported needs to be confiscated. Consequently, analyzing the gravity of offence, directed confiscation but imposed nominal fine and penalty under Sections 111(m) and 112(a) of the Customs Act, 1962 respectively - there are no justification advanced by the appellant to disturb the findings recorded by the learned Commissioner, which is based on evidence on record. Appeal dismissed - decided against appellant.

Summary

Issues:
Violation of Customs Act and Foreign Trade Policy Regulation in declaring imported goods as LPG Genset. Confiscation of goods imported against Bill of Entry. Imposition of fine and penalty on the appellant.

Analysis:
The appeal was filed against an Order-in-Original passed by the Commissioner of Customs regarding the importation of Petroleum run generators declared as LPG run generators. The investigation revealed discrepancies in the declaration made by the importer. The goods were seized and later provisionally released. A show-cause notice was issued, alleging violations of the Customs Act and Foreign Trade Policy Regulation, proposing confiscation of goods and penalties. The Commissioner directed the confiscation of the imported goods against the Bill of Entry, imposed fines, and penalties. The appeal challenged this order.

The appellant argued that the imported DG sets were Dual fuel Gensets capable of running on both petrol and LPG. They contended that the separate LPG kits should be considered part of the Gensets, as they were imported in a CKD condition. The appellant denied any intention to mislead or violate regulations. The Revenue's representative supported the Commissioner's findings, emphasizing the discrepancy between the declared consignment as LPG Generator and the actual importation of petrol-driven generators.

The Tribunal considered both parties' submissions and upheld the Commissioner's decision. The Commissioner found a violation of Trade Regulations due to the incorrect declaration of the imported goods as LPG Gensets. Despite no substantial policy violation, the incorrect declaration warranted confiscation of the goods. The Tribunal agreed with the Commissioner's findings based on the evidence presented. Consequently, the impugned order was upheld, and the appeal was dismissed.

In conclusion, the Tribunal affirmed the confiscation of goods imported against the Bill of Entry, the imposition of fines, and penalties on the appellant for violating Customs Act and Foreign Trade Policy Regulations. The decision was based on the discrepancy between the declared and actual nature of the imported goods, leading to the rejection of the appellant's appeal.