2016 (10) TMI 724 - AT - Customs

Import of white garlic - whether white garlic is dried garlic or fresh garlic? - Imposition of redemption fine and penalty - Held that - the appellant had never declared the consignment of garlic before the lower authorities as dried garlic , instead has declared the consignment as pure white garlic . In our view pure white garlic cannot be considered as dried garlic despite there being no samples drawn and tested. The decision in the case of Raisoni Exports (India) Pvt. Ltd. vs. Commissioner of Customs, Nhava Sheva 2011 (2) TMI 259 - CESTAT, MUMBAI does not apply to the present case as the appellant therein had declared the goods imported from Pakistan as dried garlic but on test it was found that the goods were not dried garlic but fresh garlic. In the case in hand, we find that the consignment is declared as pure white garlic . Quantum of redemption fine and penalty found to be in excessive - ends of justice would be met if the redemption fine is reduced to ₹ 1 lakh as also the penalty from ₹ 30,000/- to ₹ 20,000/- - appeal disposed off - decided partly in favor of appellant.

Summary

Issues Involved:
Redemption fine imposed in lieu of confiscation and penalty for importing fresh garlic declared as white garlic.

Analysis:
The appeal challenged Order-in-Appeal No: 393 & 394/2003 MCH dated 18/12/2003 by the Commissioner of Customs (Appeals), Mumbai - I. The main issue was the redemption fine and penalty imposed for importing fresh garlic declared as white garlic. The appellant contended that the imported goods were dried garlic, not fresh garlic. However, upon examination, it was revealed that the garlic was fresh, leading to an amendment in the bill of entry and tariff classification with confirmed duty liability. The appellant argued that fresh garlic was restricted while dried garlic was freely importable during the import period. The appellant referenced a previous judgment in a similar case but failed to convince the Tribunal.

The Tribunal noted that the appellant never declared the garlic consignment as dried garlic but as pure white garlic. Despite no samples being drawn and tested, the Tribunal concluded that pure white garlic cannot be considered dried garlic. Consequently, the appeal lacked merit. The adjudicating authority had imposed a redemption fine of &8377; 1,30,000 against the consignment valued at approximately &8377; 5.26 lakhs. The Tribunal deemed this fine excessive and reduced it to &8377; 1 lakh, along with decreasing the penalty from &8377; 30,000 to &8377; 20,000. The appeal was rejected with modifications to the fine and penalty as indicated.

This judgment highlights the importance of accurate declaration in customs matters, emphasizing the consequences of misrepresentation. The Tribunal's decision to reduce the redemption fine and penalty showcases a balanced approach to ensure justice is served while considering the circumstances of the case.