2023 (6) TMI 323 - AT - Customs

Confiscation - Reduction in quantum of redemption fine and penalty - import of old and used worn clothing, completely fumigated - restricted item or not - to be classified under Tariff Item No.63090000 of the First Schedule of the Act or not - HELD THAT - This issue came up before this Tribunal in the case of VENUS TRADERS, RAINBOW INTERNATIONAL, AL-YASEEN ENTERPRISES, GLOBE INTERNATIONAL, KRISHNA EXPORT CORPORATION, PRECISION IMPEX, BMC SPINNERS PVT. LTD., SHIVAM TRADERS, LEELA WOOLEN MILLS, M.U. TEXTILES VERSUS COMMISSIONER OF CUSTOMS (IMPORTS) MUMBAI 2018 (11) TMI 625 - CESTAT MUMBAI , wherein this Tribunal has observed that The failure of the original authority to comply with the direction in remand to disclose the margin of profit that prompted the fine and penalty, the matter would normally have to be remitted back by another remand order. However, the paucity of evidence and the negligible scope for ascertainment at this stage deters us from doing so. The redemption fine and penalty imposed on the respondent to the tune of 10% 5% respectively on the assessed value is sufficient - there are no infirmity in the impugned order and the same is upheld - appeals filed by the Revenue are dismissed.

Summary

Issues involved:
The issues involved in the judgment are the enhancement of declared value of imported goods, imposition of redemption fine and penalty, classification of goods under restricted tariff item, and compliance with licensing requirements.

Enhancement of declared value and imposition of fines:
The respondent imported old and used worn clothing, leading to an enhancement of the declared value from US$ 1.20 per kg to US$ 1.316 per kg. Additionally, redemption fine and penalty were imposed due to the classification of the goods under a restricted tariff item. The Adjudicating Authority initially imposed fines at a rate of 30% and 10% of the assessed value, which were later reduced to 10% and 5% respectively by the Commissioner. The Revenue appealed against this reduction, leading to the current judgment.

Compliance with licensing requirements:
The Tribunal referred to a previous case where it was noted that confiscation under Section 111(d) of the Customs Act was justified for the import of old and serviceable garments without the required import license as per the Foreign Trade Policy. The Tribunal upheld the confiscation of goods but reduced the redemption fine to 10% and penalty to 5% of the assessed value, considering the failure to comply with licensing requirements.

Judgment and decision:
After hearing the parties and examining the records, the Tribunal found that the redemption fine and penalty imposed on the respondent were sufficient based on a previous decision. The Tribunal upheld the impugned order, dismissing the appeals filed by the Revenue. The decision was made in the interest of justice, considering the failure to comply with licensing requirements and the reduction of fines to 10% and 5% of the assessed value.

Separate Judgment:
No separate judgment was delivered by the judges in this case.