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Issues: Misdeclaration of imported goods leading to confiscation, classification dispute under Customs Tariff, imposition of redemption fine and penalty.
Misdeclaration of Imported Goods Leading to Confiscation: The case involved the misdeclaration of imported goods declared as 'Aluminium Tense Scrap' under sub-heading 7602.00 of the Customs Tariff. The Department proposed confiscation of the goods, suspecting misdeclaration for duty evasion. However, the appellants argued that the description was based on documents from the foreign supplier and there was no intent to misdeclare. The correspondence between the appellants and the supplier clarified the mistake made by the supplier in shipping the wrong goods. The Tribunal found that the goods were not misdeclared, as the duty was paid under the correct sub-heading, and there was no intention to evade payment. Therefore, the goods were not liable for confiscation, and the redemption fine and penalty were unwarranted. Classification Dispute Under Customs Tariff: The Department contended that the goods should be classified under Tariff Sub-heading 7601.20 instead of 7602.00 as declared by the appellants. The appellants argued that the goods fell under 7602.00, which specifically applied to aluminium scrap. They pointed out that the Commissioner's classification was incorrect, as the goods were clearly aluminium scrap. The Tribunal agreed with the appellants, stating that once the nature of the goods was established as aluminium scrap, they should be classified under the appropriate sub-heading. The Tribunal found no reason to classify the goods under a different sub-heading, as there was no misdeclaration. Imposition of Redemption Fine and Penalty: The Department imposed a redemption fine and penalty based on the alleged misdeclaration of goods. However, the Tribunal ruled that since there was no misdeclaration and the duty was paid under the correct sub-heading, the imposition of redemption fine and penalty was unjustified. The Tribunal cited relevant case law supporting the appellants' position and concluded that the order of the Commissioner of Customs was not sustainable. Therefore, the appeal was allowed, and the impugned order was set aside. This detailed analysis of the judgment addresses the issues of misdeclaration of imported goods leading to confiscation, classification dispute under the Customs Tariff, and the imposition of redemption fine and penalty, providing a comprehensive overview of the Tribunal's decision and the arguments presented by both parties.
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