2017 (9) TMI 1572 - AT - Customs

Import of restricted item - Waste and scrap - confiscation - Held that - There is no dispute that the other waste and scrap under CTH 76020090 is restricted item and the appellant imported without any valid license and therefore, confiscation of the goods is justified. Redemption fine - penalty - Held that - It is seen that the lower authority had considered the submissions of the appellant and had given the finding in detail - the redemption fine and penalty is reduced - appeal allowed - decided partly in favor of appellant.

Summary

Issues: Classification of goods under Customs Tariff Heading, Justification of Redemption Fine and Penalty, Observance of Principles of Natural Justice

Classification of Goods under Customs Tariff Heading:
The case involved the classification of goods imported by the appellant under Customs Tariff Heading (CTH) 76020010 or 76020090. The Adjudicating Authority initially confiscated the goods under Section 111(d) & (m) of the Customs Act, 1962, and imposed a Redemption Fine and penalty. The Commissioner of Customs(Appeals) later held that the goods should be classified under CTH 76020090, reducing the Redemption Fine and penalty. The appeal argued that the goods should not be classified as such, but the examination report indicated otherwise, leading to the dismissal of this argument.

Justification of Redemption Fine and Penalty:
The appellant contested the justification of the Redemption Fine and penalty imposed by the authorities. The appellant claimed that the authorities did not consider the general rules of interpretation and that the penalties were not warranted. The Tribunal found that the imported goods were a restricted item under CTH 76020090 and were imported without a valid license, justifying the confiscation. However, considering the circumstances and submissions, the Tribunal decided to reduce the Redemption Fine and penalty.

Observance of Principles of Natural Justice:
The appellant also raised concerns about the Adjudicating Authority not following the principles of natural justice. The lower authority's detailed consideration of the submissions was noted, and despite the age of the case, the Tribunal found the appellant's arguments lacking merit. Nonetheless, the Tribunal acknowledged the need to reduce the Redemption Fine and penalty based on the case's specifics.

In conclusion, the Tribunal reduced the Redemption Fine to &8377; 75,000 and &8377; 85,000, and the penalty to &8377; 25,000 and &8377; 30,000 for the two bills of entries dated 09.04.2007. The appeal was disposed of accordingly on 14.02.2017.