2004 (12) TMI 167 - AT - Customs

Summary

Issues:
1. Discrepancy in quantity and weight of exported goods.
2. Allegations of false declaration in export documents.
3. Violation of principles of natural justice.
4. Excessive redemption fine and penalties.

Analysis:
1. The appellant exported stainless steel utensils but a significant difference in quantity was found during examination at the I.C.D. The Customs authorities investigated and discovered discrepancies in the quantity of goods exported, leading to suspicions of false declarations to gain undue benefits.

2. Show cause notices were issued to the appellants alleging false declaration of quantity and value in export documents. The appellants contested the charges but failed. The case was remanded for fresh adjudication, and the present appeals challenge the subsequent order issued by the Commissioner.

3. The appellants provided explanations for the discrepancies, attributing them to differences in counting methods and communication errors. However, the Tribunal found the explanations unsatisfactory, especially regarding the weight discrepancy, which was about half of the declared weight. The charge of misdeclaration of quantity and value was upheld.

4. The Tribunal considered the excessive redemption fine and penalties imposed on the appellants. The redemption fine was reduced to Rs. 6 lakhs, and the penalties were also reduced. The imposition of penalties on company officials without specific findings about their roles was deemed unjustified, leading to the penalties being set aside.

Overall, the appeals were disposed of with adjustments made to the redemption fine and penalties, providing relief to the appellants based on the excessive nature of the original penalties.