2023 (8) TMI 1247 - AT - Customs

Valuation of imported goods - old and used worn clothing, completely fumigated - restricted item or not - enhancement of value - confiscation - 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 held that At any event all the importers had agreed during the personal hearing conducted by the then Commissioner of Customs (I), that the impugned goods were either old and used garments other than rags or they were not mutilated as per the norms laid down in this regard. It is on this agreement for the nature/description of goods, that we have to proceed further in this case. As regards the margin of profit, a market survey was done whose salient features are as follows in the impugned order. Against the confirmed duties and the penalties the Redemption Fine imposed by the Adjudicating Authority, the Respondent has not filed any appeals. 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 - appeals filed by the Revenue are dismissed.

Summary

Issues:
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 Customs Act, 1962.

Enhancement of Redemption Fine and Penalty:
The Revenue appealed against the impugned order which assessed old and used worn clothing after value enhancement, confiscation, and imposition of redemption fine and penalty. The declared value was increased from US$ 0.45 per kg to US$ 0.60 per kg, with redemption fine and penalty imposed due to the goods being classified 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 sought enhancement of these amounts, but the Tribunal held that the redemption fine and penalty imposed were sufficient for the ends of justice based on a previous decision. The Tribunal upheld the redemption fine and penalty confirmed by the adjudicating authority, dismissing the appeals filed by the Revenue.

Compliance with Licensing Requirements:
The Tribunal referred to a previous case where it was observed that confiscation under Section 111(d) of the Customs Act, 1962 was justified for the import of old and serviceable garments without the required import license as per the Foreign Trade Policy. The Tribunal noted that the release of confiscated goods is subject to a fine in lieu imposed under the Customs Act, 1962. While the Tribunal acknowledged the failure to comply with licensing requirements, it reduced the redemption fine to 10% of the ascertained value and the penalty to 5%, considering the circumstances and the ends of justice. The Tribunal upheld the confiscation of goods under Section 111(d) but adjusted the redemption fine and penalty amounts based on the specific case details.

Conclusion:
In conclusion, the Tribunal dismissed the Revenue's appeals, upholding the redemption fine and penalty imposed on the imported goods. The Tribunal found no infirmity in the impugned order and confirmed the decision of the adjudicating authority. The judgment was dictated and pronounced in the open court, bringing the matter to a close.