2001 (2) TMI 450 - AT - Customs

Summary

Issues: Classification of imported goods, value declaration, import license requirement, confiscation of goods, penalties on importer and Custom House Agent

In this judgment by the Appellate Tribunal CEGAT, Mumbai, the case involved a bill of entry filed by Pfizer Ltd. for the clearance of "Promotional matter" under Chapter 49.01 of the Tariff, which was claimed to be printed matter but turned out to be light pointers used in lectures or presentations. The Custom House found the classification incorrect, the value declared too low, and the import license missing. After a hearing, the Additional Commissioner ordered the confiscation of goods, penalties on the importer, and the Custom House Agent. The Commissioner (Appeals) upheld the confiscation and penalties, leading to three appeals before the Tribunal.

The Tribunal first addressed the issue of penalty imposed on an employee, P.P. Mehta, noting that he was not given a chance to show cause against the penalty, thus setting it aside. Regarding the other two appellants, it was argued that the importer acted in good faith as they were unaware of the true nature and value of the goods, and penalties were excessive. However, the Tribunal found that the importer did not request the first check examination, and subsequent changes to the bill of entry were incorrect. The airway bill described the goods accurately, and the lack of a required license justified the confiscation of goods.

Considering the value of the goods and the redemption fine, the penalty on the importer was reduced. The penalty on the Custom House Agent was also reduced by the Commissioner (Appeals), but the Tribunal deemed it unjustified, highlighting the agent's irresponsibility and disregard for the law. While acknowledging the need for action against the agent under Customs House Agents Licensing Regulations, the Tribunal refrained from directing such action due to the passage of time since the incident. Ultimately, one appeal was dismissed, another allowed in part, and the third appeal allowed by the Tribunal.