2024 (4) TMI 1097 - AT - Customs

Seizure of plastic granules - Valuation - Confiscation of the vehicle - payment of redemption fine - Penalty - Interception and seizure of a truck carrying plastic scrap and granules allegedly of Nepalese origin. - HELD THAT - In respect of the plastic scrap seized valued at Rs.2,16,180/-, I find that the documentary evidence clarifies that the Appellant had imported the 11,000 kgs. on 15.06.2016 vide Bill of Entry No.5638434, which is also affirmed by the Asstt. Commissioner and the invoice raised by them is for 10,000 kgs., whereas, the goods in question were weighted at 9388 kgs.. Reading together all these documents, I find that enough evidence has been provided by the Appellant to the effect that these are not procured illegally from Nepal, but are legally procured goods. Therefore, I set aside the confiscation order and the redemption fine of Rs.50,000/- imposed on the scrap valued at Rs.2,16,180/-. The Revenue is directed to release the plastic scrap to the Appellant forthwith. So far as the penalty of Rs.14,854/- imposed on Shri Bindeshwari Poddar is concerned, I find that in respect of plastic scrap, there is no case made out against the Appellant. However, in case of plastic granules, the Appellant though initially has not claimed the ownership, but has come forward to redeem the same on payment of redemption fine and the relevant payment of the relevant Customs duty. Based on these facts, the penalty of Rs.14,854/- is reduced to Rs.5,000/- (Rupees Five Thousand only). The Appellant has made a Security Deposit of Rs.64,854/-. This amount should be utilized to appropriate the redemption fine of Rs.20,000/- in respect of granules and the penalty imposed on Shri Bindeshwari Poddar and against the balance Customs duty and interest to be paid by the Appellant. The Appeal is disposed of thus.

Summary

Issues involved: Seizure and confiscation of goods, imposition of redemption fine and penalty, discrepancy in quantity of seized goods and Bill of Entry.

Seizure and Confiscation of Goods: The Officers of SSB intercepted a truck carrying plastic scrap and granules of Nepalese origin, seized the goods, and issued a Seizure Receipt. The owner of the goods claimed that they were legally imported from Nepal under a specific Bill of Entry. The lower authorities confirmed the demand, imposed redemption fines and penalties, and confiscated the vehicle. The Appellant contested the seizure and confiscation, providing evidence of legal importation, which was affirmed by the Assistant Commissioner. The Tribunal found sufficient evidence that the goods were legally procured, set aside the confiscation order and redemption fine for the plastic scrap, and directed the Revenue to release the goods to the Appellant.

Imposition of Redemption Fine and Penalty: The Adjudicating authority imposed redemption fines and penalties on the seized goods and the vehicle owner. The Appellant, owner of M/s. Rachna Enterprises, accepted the redemption fine for the granules but disputed the penalty imposed. The Tribunal reduced the penalty imposed on the Appellant from Rs.14,854 to Rs.5,000, considering the circumstances of the case and the Appellant's actions in redeeming the goods and paying relevant duties.

Discrepancy in Quantity: There was a discrepancy in the quantity of plastic scrap seized and the quantity shown in the Bill of Entry and invoice. The Department justified the orders based on this difference. However, the Appellant provided evidence that they had legally imported the goods, as affirmed by the Assistant Commissioner and supported by documentary evidence. The Tribunal found in favor of the Appellant, setting aside the confiscation order and redemption fine for the plastic scrap.

Conclusion: The Tribunal allowed the Appeal, directing the Appellant to pay applicable Customs duty and interest for the granules, reducing the penalty imposed, and utilizing the Security Deposit to cover the fines and duties. The Appeal was disposed of accordingly.