SECURE METERS LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) The appellants had imported certain consignments of Integrated Circuits on the strength of an Advance Licence under the DEEC Scheme and filed Bill of Entry for clearance of the goods claiming the benefit of exemption under Notification No. 47/2002 -Cus. The Customs authorities on a second check of the consignment detected an excess quantity of 1512 pieces of Integrated Circuits in the consignment covered under Bill of Entry No. 255397, dated 5 -4 -2003, whereupon the appellants waived show cause notice and obtained clearance of the goods on payment of redemption fine of Rs. 2.5 lakhs imposed by the Commissioner of Customs under order dated 26 -6 -2003, which is impugned in this appeal. The impugned order has also imposed a penalty of Rs. 2 lakhs on the appellants under Section 112(a) of the Customs Act.

(2.) Heard both the sides.

(3.) Ld. Counsel for the appellants submits that the Commissioner has ordered confiscation of the entire consignment under Section 111(m) of the Customs Act despite the undisputed fact that a quantity of 2016 pieces of Integrated Circuits declared in the Bill of Entry had been lawfully imported free of duty under the DEEC Scheme. It was only the excess quantity of 1512 pieces of Integrated Circuits which was liable to confiscation. The redemption fine has been determined on the wrong premise that the entire consignment was liable to confiscation under Section 111(m). Counsel pleads for a lenient view in regard to penalty also.