CESTAT upheld the confiscation of goods and imposition of ...

Fabric Importer Faces Penalties Under Sec 111(m) For Misclassifying Polyester Knitted Material As Warp Knit

February 1, 2025

Case Laws     Customs     AT

CESTAT upheld the confiscation of goods and imposition of differential customs duty regarding misclassification of 100% Polyester Knitted Fabric. The appellant incorrectly declared goods under CTH 60059000 (warp knit fabrics). The proprietor's acceptance of test reports and subsequent duty payment constituted clear admission of misdeclaration. The Tribunal affirmed confiscation under Sec. 111(m) of Customs Act, with redemption fine. Differential duty was sustained under Sec. 28(1) proviso. Mandatory penalty under Sec. 114A was upheld due to suppression of facts leading to duty evasion. The Tribunal relied on established jurisprudence regarding admissibility of statements under Sec. 108, citing precedents that customs officers' recorded statements constitute valid evidence for penalty proceedings.

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