2023 (8) TMI 749 - AT - Customs

Valuation of imported goods - old and used worn clothing, completely fumigated - rejection of declared value - enhancement of value - Confiscation - quantum of redemption fine and penalty - 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 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. It is held that the redemption fine and penalty imposed on the respondent to the tune of 10% 5% respectively on the assessed value is sufficient. Therefore, the redemption fine and penalty confirmed by the ld.Commissioner (Appeals) are sufficient to meet the end of justice. There are no infirmity in the impugned order and the same is upheld - appeal filed by the Revenue is dismissed.

Summary

Issues Involved:
The issues involved in the judgment are the enhancement of declared value, confiscation of imported goods, imposition of redemption fine and penalty, classification of goods under Tariff Item No.63090000, licensing requirements under the Foreign Trade Policy, and compliance with Customs Act, 1962.

Enhancement of Declared Value:
The respondent imported old and used worn clothing, which were completely fumigated. The declared value was enhanced from US$ 0.40 per kg to US$ 0.60 per kg. The Adjudicating Authority imposed redemption fine and penalty based on the classification of the goods under Tariff Item No.63090000 and the licensing requirements under the Foreign Trade Policy.

Confiscation and Penalty Imposition:
Confiscation under Section 111(d) of the Customs Act, 1962 was invoked 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 the goods and imposed a redemption fine of 10% and a penalty of 5% of the assessed value, considering the failure to comply with licensing requirements.

Compliance with Customs Act, 1962:
The Tribunal referred to a previous case where it was observed that confiscation under Section 111(d) could be justified for imports without the necessary license. The Tribunal emphasized the importance of complying with the licensing requirements and upheld the confiscation of the goods under Section 111(d) of the Customs Act, 1962.

Decision and Upholding of Impugned Order:
Based on the cited decision, the Tribunal found the redemption fine and penalty imposed on the respondent to be sufficient at 10% and 5% respectively. The Tribunal upheld the impugned order, dismissing the appeal filed by the Revenue. The Tribunal concluded that the redemption fine and penalty confirmed by the Commissioner (Appeals) were adequate to serve the ends of justice.