PALLIPPADAN ENTERPRISES Vs. COMMISSIONER OF CUSTOMS, COCHIN

JUDGEMENT

(1.) THE appellants vide Bill of Entry dated 19 -10 -1999 pursuant to contract dated 14 -9 -1999 entered with the foreign supplier imported dry garlic of Chinese origin from Hong Kong at the price USD 365 per MT C&F and declared the same on the Bill of Entry filed for clearance, on OGL under heading 071290. The Custom House, pursuant to clarification dated 17 -9 -1996 by JDGFT, ascertained the moisture content which was found to be 64% by the Custom House Laboratory and therefore, held that the goods under import were not to be considered Dried Garlic as declared by the importer; it was not freely importable under heading 07129004 of ITC (HS) and it would fall under 07032000 of the ITC (HS). Aligned EXIM Policy and import thereof is restricted. The value declared, also did not appear to be correct, in view of the price of USD 600 per MT CIF at which such goods were cleared at Tuticorin Port. Therefore the goods were held to be liable for confiscation under the provisions of Section 111(d) and 111(m) read with Section 3 of Foreign Trade (Development and Regulation) Act, 1992 and value was enhanced to US $ 600. Since the goods had been released, pursuant to an order of Kearala High Court and not available for confiscation, a penalty of Rs. 4 lakhs under Section 112A of the Customs Act, 1962, was levied keeping in view the quantum of redemption fine which could be imposed.

(2.) WE have heard both sides since the matter came up today in a Misc. Application for modification of Interim Order No. 76/2000, dated 20 -1 -2000. We take up this matter for final decision, with the consent of both sides, and after considering the grounds made out by the appellants and the cross objections filed by the Revenue, since the issue of import of Sun Dry White Garlic of Chinese origin is no longer res integra.

(3.) AFTER considering the matter and the facts sent by the Advocates on record dated 6 -5 -2001 we find : -