2023 (6) TMI 711 - AT - Customs

Quantum of redemption fine and penalty - Adjudicating Authority has imposed redemption fine and penalty at the rate of 19.5% 7.8% of the assessed value respectively - Revenue seeks to enhance the levy of redemption fine and penalty - old and used worn clothing articles are classifiable under Tariff Item No.63090000 of the First Schedule of the Act - restricted goods or not - enhancement of value - 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 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 respondents by the adjudicating authority is sufficient to meet the end of justice. Therefore the redemption fine and penalty confirmed by the adjudicating authority are upheld - there are no infirmity in the impugned order and the same are upheld - appeal of Revenue dismissed.

Summary

Issues involved:
The issues involved in the judgment are the enhancement of redemption fine and penalty imposed on imported old and used worn clothing, the classification of the goods under Tariff Item No.63090000, and the compliance with licensing requirements under the Foreign Trade Policy.

Enhancement of Redemption Fine and Penalty:
The appellant imported old and used worn clothing, which were assessed after value enhancement, confiscation, and imposition of redemption fine and penalty. The declared value was increased from US$ 0.36 per kg to US$ 0.60 per kg due to the classification of the goods under Tariff Item No.63090000. The adjudicating authority imposed redemption fine and penalty at rates of 19.5% and 7.8% of the assessed value, respectively. The Revenue appealed for further enhancement of redemption fine and penalty. The Tribunal referred to a previous case and held that the redemption fine and penalty imposed were sufficient to meet the ends of justice. Therefore, the impugned order was upheld, and the appeals filed by the Revenue were dismissed.

Compliance with Licensing Requirements:
The Tribunal noted that the import of goods classified under Tariff Item No.63090000 is restricted, and import is allowed only against a valid specific license. Confiscation under Section 111(d) of the Customs Act, 1962 was invoked for the import of "old and serviceable garments" without the required import license as per the Foreign Trade Policy. The Tribunal upheld the confiscation of goods under Section 111(d) due to the admitted failure to comply with licensing requirements. However, the redemption fine was reduced to 10% of the ascertained value, and the penalty was reduced to 5% in the interest of justice. The Tribunal found no infirmity in the impugned order and upheld the redemption fine and penalty confirmed by the adjudicating authority.