2022 (3) TMI 871 - AT - Customs

Mis-declaration of imported goods - gold/silver dore bars - excess quantity of gold bars - instead of 74 bars (as per packing list), the officers found 76 bars - confiscation - imposition of redemption fine and penalty - HELD THAT - The gold is sold by weight and not by number of pieces. Admittedly, in the facts of the present case, the gross weight of the packing as reduced by packing materials, the net weight of the gold dorebars matches with the import documents. Thus, there is no case of mis-declaration or any excess weight of gold dore bars found by Revenue, as per the admitted facts. The whole exercise - proceedings for confiscation and penalty is only for the alleged excess quantity, that dore gold bars are more than the numbers mentioned in the packing list and the invoice, is wholly mis-conceived - Appeal dismissed - decided against Revenue.

Summary

Issues Involved:
- Mis-declaration of import consignment of gold/silver dore bars

Detailed Analysis:

Issue: Mis-declaration of import consignment of gold/silver dore bars
The case revolved around the question of whether the respondent had mis-declared the import consignment of gold/silver dore bars. The respondent, a licensed importer, regularly imported such dore bars for refining and subsequent clearance of pure gold or silver bars. The bill of entry filed by the respondent indicated a gross weight of 463 kgs, including packing materials. However, upon examination, the weight of packing materials was found to be 29.237 kgs, resulting in a net weight of metal in the consignment of 433.763 kgs, matching the packing list and assay certificate. Despite finding 76 bars instead of the expected 74 bars during examination, the Tribunal noted that the gross weight of the gold dore bars aligned with the import documents, indicating no mis-declaration or excess weight of gold dore bars. The Tribunal emphasized that gold is sold by weight, not by the number of pieces, and concluded that the proceedings for confiscation and penalty based on the alleged excess quantity were misconceived. Consequently, the Tribunal dismissed the appeal by Revenue and set aside the order-in-original, granting the respondent consequential benefits as per the law.

This judgment highlights the importance of accurate declarations in import consignments, emphasizing that discrepancies in the number of items may not necessarily indicate mis-declaration if the overall weight aligns with the documentation. The decision underscores the need for thorough examination and consideration of all relevant facts before alleging mis-declaration and imposing penalties in customs cases.