2024 (6) TMI 777 - AT - Customs

Classification of imported goods - worn clothing (old and used garments) - classifiable under Customs Tariff Item No. 6309 90 00 of the First Schedule of the Customs Tariff Act, 1975 or not - valuation - enhancement of redemption fine and penalty. Classification of imported goods - HELD THAT - The Ld. Commissioner has given an elaborate finding in the impugned order and upheld the classification of the goods as goods as old and used garments classifying the same under Customs Tariff Heading 6309. It is found that there is no evidence available on record to reclassify the goods as other than old and used garments , as claimed by the Revenue. Accordingly, the classification of the goods determined by the adjudicating authority in the impugned order is upheld. Valuation of the goods - HELD THAT - The goods were old and used garments, for which the general practice of valuation adopted during the relevant period was at the rate of US 0.60 per kg(CIF). The adjudicating authority has already enhanced the value from US 0.55 to US 0.60 per kg(CIF). Accordingly, there are no infirmity in the value re determined by the adjudicating authority and hence uphold the same. Redemption fine and penalty - HELD THAT - 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 is upheld - appeal of Revenue dismissed.

Summary

Issues Involved:
1. Correct classification of imported goods under Customs Tariff Item No. 6309 90 00.
2. Valuation of goods u/s Rule 9 of the Customs Valuation Rules.
3. Imposition of redemption fine and penalty u/s Sections 125 and 112(a) of the Customs Act, 1962.

For the first issue of correct classification, the Appellate Tribunal upheld the classification of the goods as 'old and used garments' under Customs Tariff Heading 6309. The Tribunal found no evidence to reclassify the goods as claimed by the Revenue, thus supporting the adjudicating authority's decision.

Regarding the valuation of the goods, the Tribunal noted that the general practice during the relevant period was to value old and used garments at US$ 0.60 per kg(CIF). As the adjudicating authority had already enhanced the value from US$ 0.55 to US$ 0.60 per kg(CIF), the Tribunal upheld this valuation without finding any fault.

In terms of the imposition of redemption fine and penalty, the Adjudicating Authority had imposed a redemption fine of Rs.1,14,000/- u/s Section 125 and a penalty of Rs.46,000/- u/s Section 112(a) of the Customs Act, 1962. The Tribunal referred to a previous decision and concluded that the redemption fine and penalty imposed were sufficient for justice, upholding the same.

Ultimately, the Tribunal dismissed the appeal filed by the Revenue, finding no infirmity in the impugned order. The decision was pronounced in open court, confirming the classification, valuation, redemption fine, and penalty as determined by the adjudicating authority.