2024 (11) TMI 594 - AT - Customs

Value enhancement, confiscation and imposition of redemption fine and penalty - old and used worn clothing, completely fumigated - Import of goods under Tariff Item No.63090000 is restricted and their import is allowed only against the valid specific license. HELD THAT - We find that this issue came up before this Tribunal in the case of Venus Traders 2018 (11) TMI 625 - CESTAT MUMBAI uphold the confiscation of the goods under Section 111(d) of Customs Act, 1962. However, it is our opinion that the ends of justice would be served by reducing the redemption fine to 10% of the ascertained value and penalty to 5%. Thus we hold that the penalties imposed on the respondents are sufficient. Therefore, the penalties confirmed by the Adjudicating Authority are sufficient to meet the end of justice.

Summary

Issues:
Import of old and used worn clothing, value enhancement, confiscation, redemption fine, penalty, classification under Tariff Item No.63090000, licensing requirements under Foreign Trade Policy.

Analysis:
The case involved the import of old and used worn clothing by the respondents, which were completely fumigated. The declared value of the goods was enhanced, and redemption fine and penalties were imposed due to the classification of the articles under Tariff Item No.63090000 and the licensing requirements under the Foreign Trade Policy. The Adjudicating Authority imposed penalties at a specific rate, leading to the Revenue appealing against the order.

Upon hearing the parties and examining the records, the Tribunal referred to a previous case involving similar issues. The Tribunal observed that confiscation under Section 111(d) of the Customs Act, 1962, had been rightly invoked due to the import of old and serviceable garments without the required import license. The Tribunal also discussed the imposition of redemption fine and penalties, emphasizing that the fine should not exceed the market price of the goods. The Tribunal noted discrepancies in the original authority's handling of the case post-remand, but ultimately upheld the confiscation while reducing the redemption fine and penalty percentages.

Citing the previous decision of the Tribunal, the current judgment upheld the penalties imposed on the respondents, deeming them sufficient to meet the ends of justice. Consequently, the Tribunal found no infirmity in the impugned order and upheld it, dismissing the appeals filed by the Revenue.

In conclusion, the judgment addressed issues related to the import of old and used worn clothing, value enhancement, confiscation, redemption fine, penalty, classification under Tariff Item No.63090000, and licensing requirements under the Foreign Trade Policy. The Tribunal's decision was based on legal principles, previous case law, and considerations of justice, ultimately affirming the penalties imposed while reducing the redemption fine and penalty percentages.