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TMI Blog2002 (4) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the Customs Tariff Act, 1975 and finally assessed to duty at CIF value @ US $1.12 per kg. (ii) M/s. H.B. Fibres Ltd., Ludhiana are liable to pay customs duty amounting to Rs. 35,46,456/- under Section 28(2) of the Customs Act, 1962 and I have held so. The show-cause notice points out that M/s. H.B. Fibres Ltd. had deposited a sum of Rs. 3,12,982/- at the time of filing Bills of Entry and paid Rs. 12,30,000/- vide Bank Draft No. 641494 dated 19-8-99, Rs. 5,00,000/- vide bankers Cheque No. 079585, dated 11-12-1999, Rs. 3,00,000/- vide case order No. 642098, dated 11-12-1999, Rs. 6,00,000/- vide Cheque No. 315973, dated 5-2-2000 and Rs. 6,04,600/- vide Cheque No. 315975, dated 6-3-2000. Thus a total of Rs. 35,47,582/- (Rupees thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... waste", from M/s. Bollag International Corporation (USA) and sought to clear the same at CFS, Ludhiana under two Bills of Entry Nos. 1823 and 1824, dated 7-9-98 filed by one Shri D.D. Singh, holding power-of-attorney of one Shri M.L. Sharma, claiming to be a director of M/s. H.B. Fibres Ltd; that the goods were assessed to duty under Customs Tariff Heading 51.03 and the duty was paid by the importer, that on a second check the goods in both the consignments were found to be "acrylic fibre" classifiable under CTH 55.03 attracting (apart from Anti-dumping Duty) higher rates of various duties viz. Basic Customs Duty, Special Customs Duty, Countervailing Duty and Additional Duty under the Additional Duties of Excise (T TA) Act, 1978; that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellants paid the differential amount of duty on the differential value between US $ 1.12 per kg. (at which rate the foreign supplier was found to have actually supplied the goods) and US $ 0.60 per kg. (invoiced price). The amounts paid by the appellants totalling to Rs. 35,46,456/- were liable to be appropriated towards duty on the acrylic fibre (Customs Tariff Sub-heading 5503.30) under Section 28(2) of the Customs Act; (b) The invoice price of US $ 0.60 per kg. of what was described as "wool waste" was not to be accepted as transaction value of acrylic fibre and the same was liable to be rejected under Rule 10A of the Customs Valuation Rules, 1988. The goods were actually sold by the foreign supplier to the appellants @ U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confiscation. The misdeclaration and undervaluation were done by Shri Ravi Jagota of M/s. Youngman Industries Ltd. The appellants had acted in a bona fide manner only. Hence there was no valid reason for imposing on them any redemption fine in lieu of confiscation of the goods. In this connection, Ld. counsel relied on the following case law : (i) Akbar Badruddin Jiwani v. Collector of Customs [1990 (47) E.L.T. 161 (S.C.)] (ii) Indian Explosives Ltd v. Collector of Customs [1992 (60) E.L.T. 111 (Cal.)] Relying on the Tribunal's decision in Nirmal Surekha Ors. v. CC [2001 (132) E.L.T. 597 (T) = 2001 (45) R.L.T. 156], ld. Counsel, alternatively, pleaded for a lenient view as regards the quantum of redemption fine impos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity as confirmed by the adjudicating authority was discharged by the assessee prior to finalisation of the assessment, we have to sustain the counsel's challenge to the interest sought to be levied under Section 28AB. The demand of interest is therefore set aside. The confiscability of the goods under Section 111(m) of the Customs Act was conceded by the party when they conceded misdeclaration of description and value of the goods. A penalty under Section 112 of the Act has a direct nexus to the confiscability of the goods under Section 111. The appellants have not pressed their challenge vis-a-vis the penalty. The goods were admittedly not available for confiscation. In these circumstances, a redemption fine was warranted. The case law cit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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