2023 (6) TMI 376 - AT - Customs

Reduction in the quantum of Redemption Fine and Penalty - Valuation of imported goods - old and used worn clothing, completely fumigated - enhancement of value - restricted goods or not - requirement of valid license for such import - HELD THAT - This issue came up before this Tribunal in the case of VENUS TRADERS, RAINBOW INTERNATIONAL, AL-YASEEN ENTERPRISES, GLOBE INTERNATIONAL, KRISHNA EXPORT CORPORATION, PRECISION IMPEX, BMC SPINNERS PVT. LTD., SHIVAM TRADERS, LEELA WOOLEN MILLS, M.U. TEXTILES VERSUS COMMISSIONER OF CUSTOMS (IMPORTS) MUMBAI 2018 (11) TMI 625 - CESTAT MUMBAI , wherein this Tribunal has observed that The failure of the original authority to comply with the direction in remand to disclose the margin of profit that prompted the fine and penalty, the matter would normally have to be remitted back by another remand order. However, the paucity of evidence and the negligible scope for ascertainment at this stage deters us from doing so. The redemption fine and penalty imposed on the respondent to the tune of 10% 5% respectively on the assessed value is sufficient. Therefore, the redemption fine and penalty confirmed by the ld. Commissioner (Appeals) are sufficient to meet the end of justice - There are no infirmity in the impugned order and the same is upheld. The appeals filed by the Revenue are dismissed.

Summary

Issues:
The issues involved in the judgment are the enhancement of declared value, imposition of redemption fine and penalty on imported old and used worn clothing, and the classification of the goods under Tariff Item No. 63090000.

Enhancement of Declared Value:
The respondent imported old and used worn clothing, fumigated, with the declared value enhanced from US$ 1.10 per kg to US$ 1.316 per kg. The Adjudicating Authority imposed redemption fine and penalty on the ground that the goods are classifiable under Tariff Item No. 63090000 and are restricted for import under the Foreign Trade Policy. The ld. Commissioner reduced the redemption fine and penalty, which was further challenged by the Revenue.

Classification under Tariff Item No. 63090000:
The goods were classified under Tariff Item No. 63090000, which is a restricted item for import. The import of goods under this tariff item is allowed only against a valid specific license. The Revenue contended that the goods were imported without the required license, leading to the imposition of redemption fine and penalty.

Legal Observations and Decision:
The Tribunal referred to a previous case and noted that confiscation under Section 111(d) of the Customs Act was justified for importing old and serviceable garments without the necessary license. The Tribunal upheld the confiscation but reduced the redemption fine and penalty to 10% and 5% of the assessed value, respectively. The Tribunal emphasized the importance of complying with licensing requirements and concluded that the imposed redemption fine and penalty were sufficient to meet the ends of justice. Consequently, the impugned order was upheld, and the appeals filed by the Revenue were dismissed.