2024 (4) TMI 973 - AT - Customs

Reduction in the quantum of redemption fine and penalty - enhancement of value - old and used worn clothing, completely fumigated - Confiscation - 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. However, the paucity of evidence and the negligible scope for ascertainment at this stage deters us from doing so. Following the above cited decision of this Tribunal, 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 Revenue dismissed.

Summary

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

Enhancement of Declared Value:
The respondent imported old and used worn clothing, which were assessed after value enhancement, confiscation, and imposition of redemption fine and penalty. The declared value was enhanced from US$ 1.10 per kg to US$ 1.316 per kg. The Adjudicating Authority imposed redemption fine and penalty at the rate of 30% and 10% of the assessed value respectively. The respondent appealed, and the fine and penalty were reduced to 10% and 5% respectively by the Commissioner. The Revenue appealed against this reduction.

Classification of Imported Goods:
The imported old and used worn clothing articles were deemed to be classifiable under Tariff Item No.63090000 of the First Schedule of the Act. Import of goods under this tariff item is restricted and allowed only against a valid specific license. The confiscation of goods was empowered under Section 111(d) for the import of 'old and serviceable garments' without the required import license as per the Foreign Trade Policy.

Compliance with Licensing Requirements:
The Tribunal observed that the confiscation of goods under Section 111(d) of the Customs Act, 1962, for import of goods without the necessary license was appropriate. While the Tribunal acknowledged the failure to comply with licensing requirements, it reduced the redemption fine to 10% and penalty to 5% of the assessed value, upholding the confiscation of goods. The Tribunal found that the redemption fine and penalty confirmed by the Commissioner were sufficient to meet the ends of justice.

In conclusion, the Tribunal dismissed the appeal filed by the Revenue, upholding the impugned order and confirming the redemption fine and penalty imposed on the respondent.