SHRI SANJAY GUPTA Vs. COMMISSIONER OF CUSTOMS, NEW

JUDGEMENT

(1.) THE adjudicating authority has confiscated goods covered by 4 Bills of Entry under Section 111(d) and (m) of the Customs Act, 1962 declared to be "polyester warp knit fabrics" imported by the appellant herein through M/s.Hind Overseas, Rajouri Garden, New Delhi, on the ground that the goods were not as described but were "polyester knit pile fabrics" and for the reason that there was a misdeclaration even as to the value of the goods (the value was declared as 1.80 US per kG, while the prevailing rate was US 2.25 per Kg.) with option to redeem the same on payment of a fine of Rs.25 lakhs. In addition a penalty of Rs.5 lakhs has been imposed on the appellant under Section 112 (a) of the Customs Act.

(2.) WE have heard Shri K.K. Anand, learned Advocate and Shri Ashok Mehta, learned DR.

(3.) WE note that the appellant does not dispute that the goods were "polyester knit pile fabrics" as held by the Revenue. We also note that, although the appellant had deposed in his statement recorded on 17.10.2000 that the prevailing rate of the goods imported by him in Dubai was US 2.25 per KG, he was given a discount because of the large quantity purchased by him and the rate was settled at US 1.80 per kG he accepted the enhancement in value of the goods. Therefore, the only plea to be considered by us is that of the quantum of fine and penalty. The total value of the goods covered by the 4 Bills of Entry was declared to be Rs.51,65,233/ - while the value assessed was Rs.64,43,655/ -, and the duty assessed was Rs.31,68,486/ - but duty payable was found to be Rs.93,57,029/ -. The difference in value is, therefore, about Rs.13 lakhs. Learned SDR strongly opposes any reduction in fine and penalty, highlighting the fact that the appellant had floated a dummy firm in the name of M/s.Hind Overseas for the import of the fabrics. However, having regard to the totality of facts and circumstances of the case including the difference between the value declared and the value assessed, we are of the view that the redemption fine is on the high side and accordingly reduce the same to Rs.10 lakhs. Similarly, the quantum of penalty also calls for reduction and we reduce it to Rs.2.5 lakhs.