1999 (8) TMI 359 - AT - Customs

Summary

Issues:
1. Classification of imported goods under Customs Heading.
2. Confiscation and redemption fine of imported goods.
3. Valuation of the imported goods.

Classification Issue:
The case involved the import of old and used synthetic garments classified under Customs Heading 6310.90. The Commissioner (Appeals) set aside the confiscation of 11 bales as they contained mutilated rags, allowing their import under OGL. However, the remaining 67 bales were classified under CTH 63.09 as used clothing. The appellant argued for classification under CTH 63.10, citing previous Tribunal orders. The Tribunal upheld the classification under CTH 63.09, considering the goods as used and worn clothing, not rags.

Confiscation and Redemption Fine Issue:
The Adjudicating Authority initially confiscated the goods with a redemption fine of Rs. 4 lakhs and a penalty of Rs. 1 lakh. The Commissioner (Appeals) reduced the redemption fine to Rs. 3.5 lakhs for the 67 bales. The appellant argued for release after mutilation, referencing previous Tribunal judgments. The Tribunal agreed with the confiscation of the 67 bales as they were found to be serviceable garments without mutilation. However, the redemption fine was reduced to Rs. 2.25 lakhs, the amount fixed in the first adjudication order before remand.

Valuation Issue:
The appellant contested the valuation of the goods, claiming it was wrongly enhanced without comparing prices of comparable imports. The Tribunal found the application of Rule 8 (Best Judgment Assessment) appropriate for such goods with no uniform standard. While upholding the valuation, classification, and confiscation of the goods, the Tribunal reduced the redemption fine to Rs. 2.25 lakhs, maintaining the penalty quantum in line with the value of the goods.