AMAR INDUSTRIES Vs. COMMISSIONER OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) M /s. Amar Industries, the appellant herein had imported used machinery and cleared the same against Bill of Entry No. 03304 dated 27 -5 -2005 on payment of applicable duty. Pursuant to receipt of intelligence of undervaluation of the impugned goods by the appellants, the jurisdictional authorities investigated the transaction and found that the appellant had mis -declared the value and short paid duty to the extent of Rs. 39,316/ - (Rupees Thirty nine thousand three hundred and sixteen only). The original authority enhanced the assessable value and ordered confiscation of the machinery under Section 111(m) of the Customs Act, 1962 (the Act) with an option to redeem them on payment of a fine of Rs. 3,25,000/ - (Rupees Three lakhs twenty five thousand only). He also imposed penalty of Rs. 40,782/ - (Rupees Forty thousand seven hundred and eighty two only) under Section 114(A) of the Act on the appellant. Vide the impugned order, the Commissioner (Appeals) upheld the order of the original authority.

(2.) IN the appeal before the Tribunal and during hearing, the appellants have submitted that since the impugned goods had been released unconditionally on payment of duty assessed, the lower authority erred in confiscating the goods and ordering redemption fine. It is submitted that in the judgment of the Apex Court in the case of M/s. Weston Components Ltd. v. CC, New Delhi - 2000 (115) E.L.T. 278 (S.C.) relied on by the Commissioner (Appeals), the goods involved therein had been allowed clearance by the importer on execution of a suitable bond. The facts and circumstances of the instant case were different and the Commissioner had wrongly relied on the said judgment in ordering confiscation of the goods and redemption fine. It is prayed that the impugned order be set aside.

(3.) LEARNED SDR submits that there is no dispute that the value of the goods imported was mis -declared and that the impugned goods had been rendered liable for confiscation under Section 111(m) of the Act. The assessee was liable to penalty for the offence of having rendered the impugned goods liable for confiscation. He submits that the impugned order deserves to be sustained.