2021 (5) TMI 905 - AT - Customs

Quantum of Redemption Fine and Penalty - misdeclaration of imported goods - goods declared as heavy melting scrap but was found to be re-rollable scrap - HELD THAT - Nowhere, the Revenue has come with the evidence that prior to the physical examination of the goods in question, the appellant was having any knowledge of the description of the goods that they are not heavy melting scrap and are re-rollable scrap. In this circumstance, although the goods are liable for confiscation as they were not found as declared but redemption fine imposed is on higher side, accordingly the same is reduced to ₹ 40,000/- and penalty is also reduced to ₹ 10,000/-. Appeal allowed.

Summary

Issues: Reduction in redemption fine and penalty imposed on the appellant.

Reduction in Redemption Fine:
The appellant imported goods declared as heavy melting scrap, later found to be re-rollable scrap, leading to confiscation and imposition of differential duty, redemption fine, and penalty. The appellant sought relief for reduction in redemption fine and penalty. The ld. Commissioner (Appeals) reduced the redemption fine to &8377; 2,00,000 but maintained the penalty. The appellant appealed before the Tribunal, arguing that the differential duty was only &8377; 4.76 lakhs, making the redemption fine and penalty excessive. The Tribunal noted that there was no evidence that the appellant had prior knowledge of the misdeclaration. Therefore, despite the confiscation being justified, the redemption fine of &8377; 3,00,000 was deemed excessive and reduced to &8377; 40,000. The penalty was also reduced to &8377; 10,000.

Reduction in Penalty:
The appellant also sought a reduction in the penalty imposed. The appellant argued that since the differential duty involved was only &8377; 4.76 lakhs, the penalty of &8377; 1,00,000 was excessive. The ld. AR opposed this, claiming that the appellant must have known about the misdeclaration of goods. However, the Tribunal found no evidence that the appellant had prior knowledge of the misdeclaration. Therefore, the penalty was reduced from &8377; 1,00,000 to &8377; 10,000.

Conclusion:
The Tribunal disposed of the appeal by reducing the redemption fine from &8377; 3,00,000 to &8377; 40,000 and the penalty from &8377; 1,00,000 to &8377; 10,000. The decision was based on the lack of evidence showing the appellant's prior knowledge of the misdeclaration, despite the goods being liable for confiscation.