2018 (4) TMI 1256 - AT - Customs

Seizure of imported goods - high value Integrated Circuits (IC) - mis-declaration of description of goods - Held that - there is no factual finding of the adjudicating authority with respect to factual disputes and allegations made in the SCN - if the department is unable to provide documents as requested by the appellants as per the earlier orders of the Tribunal and the High Court, the adjudicating authority may decide the matter on the basis of the documents available before him. Hence, it is appropriate to remand the matter to the adj. auth. in the interest of justice - appeal allowed by way of remand

Summary

Issues:
1. Seizure of high-value Integrated Circuits and Transistors with misdeclaration.
2. Confiscation of seized goods, imposition of penalties, and duty recovery.
3. Denovo adjudication process and imposition of penalties on individuals.
4. Non-supply of essential documents to the appellants for defense.
5. Contradiction between department's submission and adjudicating authority's findings.
6. Lack of factual findings on disputes and allegations in the show cause notice.
7. Remand to the adjudicating authority for fresh decision in the interest of justice.

Analysis:

1. The case involved the regular clearance of high-value Integrated Circuits misdeclared as transistors by importers with the connivance of clearing agents. The seized goods were collectively valued at significant amounts and were imported under various consignments. The Adjudicating Authority confiscated the goods, imposed penalties on individuals including clearing agents, and demanded customs duty, leading to the filing of appeals by the appellants.

2. The denovo adjudication process saw penalties being imposed and challenged through multiple rounds of appeals and writ petitions. The High Court and the Tribunal remanded the matter to the adjudicating authority for providing essential documents to the appellants to defend their cases effectively.

3. The adjudicating authority's observations on the supply of documents were contested by the appellants' counsels, emphasizing the importance of documents like Bills of Entry for adjudication. Despite the lack of appearance by the appellants during the personal hearing, the adjudicating authority did not address the grievance of non-supply of documents adequately.

4. The counsels highlighted the prolonged litigation and the need to avoid repeated remands as per previous judicial observations. However, due to the absence of factual findings on disputes and non-supply of documents, the Tribunal deemed it appropriate to remand the matter to the adjudicating authority in the interest of justice.

5. The appeals were allowed by way of remand, directing the adjudicating authority to decide afresh after considering the appellants' submissions and in line with previous directions from the Tribunal and the High Court. The adjudicating authority was instructed to expedite the decision-making process and ensure proper communication with the counsels representing the appellants.