2023 (9) TMI 465 - AT - Customs

Valuation of imported goods - old and used worn clothing, completely fumigated - restricted item or not - enhancement of value - redemption fine - 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 paucity of evidence and the negligible scope for ascertainment at this stage deters us from doing so. In the light of the admitted failure to comply with the licensing requirements, we uphold the confiscation of the goods under Section 111(d) of Customs Act, 1962. However, it is our opinion that the ends of justice would be served by reducing the redemption fine to 10% of the ascertained value and penalty to 5%. Against the confirmed duties and the penalties the Redemption Fine imposed by the Adjudicating Authority, the Respondent has not filed any appeal. The redemption fine and penalty imposed on the respondents by the adjudicating authority is sufficient to meet the end of justice. Therefore, the redemption fine and penalty confirmed by the adjudicating authority are upheld - there are no infirmity in the impugned order and the same are upheld - appeal filed by the Revenue is dismissed.

Summary

Issues:
The issues involved in the judgment are condonation of delay in filing the appeal, enhancement of redemption fine and penalty on imported goods, compliance with licensing requirements, and confirmation of duties and penalties.

Condonation of Delay:
The Appellant Revenue filed a Miscellaneous Application for condoning the delay in filing the appeal before the Tribunal, which was granted based on the submission made by the Authorized Representative.

Enhancement of Redemption Fine and Penalty:
The case involved imported old and used worn clothing, which were assessed after value enhancement, confiscation, and imposition of redemption fine and penalty. The declared value was increased, and redemption fine and penalty were imposed due to the classification of the items under a restricted tariff item. The Adjudicating Authority imposed redemption fine and penalty at specific rates, and the Revenue appealed for further enhancement, which was considered by the Tribunal.

Compliance with Licensing Requirements:
The Tribunal referred to a previous case where the confiscation of goods was upheld due to the import of old and serviceable garments without the required import license as per the Foreign Trade Policy. The Tribunal upheld the confiscation under the Customs Act, 1962, and reduced the redemption fine and penalty to meet the ends of justice.

Confirmation of Duties and Penalties:
The Respondent did not file any appeal against the confirmed duties and penalties. The Tribunal, following a previous decision, upheld the redemption fine and penalty imposed by the adjudicating authority, finding them sufficient to meet the ends of justice. Consequently, the impugned order was upheld, and the appeal filed by the Revenue was dismissed. The Stay Petition was also disposed of.

This judgment addressed the issues of condonation of delay, enhancement of redemption fine and penalty, compliance with licensing requirements, and confirmation of duties and penalties, ultimately upholding the impugned order and dismissing the Revenue's appeal.