2023 (9) TMI 824 - AT - Customs

Valuation of imported old and used worn clothing - restricted item or not - enhancement of value - confiscation - redemption fine - penalty - HELD THAT - This issue came up before this Tribunal in the case of Venus Traders Vs. Commissioner of Customs (Import), Mumbai reported in 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. Thus, 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 - impugned order upheld. Appeal filed by Revenue 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, classification under Tariff Item No.63090000, and 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 classification of the goods under Tariff Item No.63090000. The Adjudicating Authority had imposed redemption fine and penalty at rates of 19.5% and 7.8% of the assessed value, respectively. The Revenue sought enhancement of these fines and penalties.

Compliance with Licensing Requirements:
The Tribunal referred to a previous case involving proceedings against imports initiated before the filing of bills of entry. It was noted 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 upheld the confiscation but reduced the redemption fine to 10% of the ascertained value and penalty to 5%, considering the failure to comply with licensing requirements.

Decision:
The Tribunal, following a previous decision, upheld the redemption fine and penalty imposed by the adjudicating authority, deeming it sufficient to meet the ends of justice. As the Respondent did not file any appeals against the confirmed duties and penalties, the Tribunal found no infirmity in the impugned order and dismissed the appeal filed by the Revenue.