2001 (1) TMI 193 - AT - Customs

Summary

Issues Involved:
The issues involved in this case include the confiscation of seized copper scrap and steel turning scraps, imposition of redemption fines, confiscation under Section 119 of the Customs Act, imposition of penalties under Section 112 of the Customs Act, and the liability of the appellants for penalty and confiscation.

Confiscation of Seized Copper Scrap:
The officers found copper scrap concealed among steel turning scrap during import, leading to the seizure of 19.880 MTs of copper scrap valued at Rs. 12,92,831.79. The Commissioner ordered the confiscation but allowed redemption on payment of a fine of Rs. 1,95,000/-.

Imposition of Penalties and Confiscation under Section 119:
Show cause notices were issued to various parties, including M/s. Shree Jagannath Steels Ltd., for confiscation of copper scrap and steel turning scraps under relevant sections of the Customs Act. Penalties were imposed on the parties, with fines ranging from Rs. 40,000/- to Rs. 60,000/-.

Appeals and Arguments:
The appellants contested the fines and penalties imposed, arguing that they acted in good faith and were unaware of the concealed copper scrap. They sought reduction in fines and penalties based on their belief in the contents of the imported goods as described in the invoice.

Decision and Analysis:
The Tribunal upheld the confiscation of the seized items and the imposition of redemption fines, citing the judgment of the Hon'ble Apex Court regarding the waiver of fines based on good faith alone. The penalties imposed on M/s. Shree Subhadra Industries and Shri B.N. Upadhyaya were set aside due to lack of evidence of benefit from the illegal import. However, the penalty on M/s. Shree Jagannath Steels Ltd. was upheld as they failed to provide crucial information during the investigation.

Conclusion:
While the penalties on M/s. Shree Subhadra Industries and Shri B.N. Upadhyaya were set aside, the appeals were otherwise rejected, affirming the Commissioner's order. The judgment highlights the importance of full disclosure and cooperation during customs investigations to avoid penalties and confiscations.