LARSEN AND TOUBRO LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) Heard both sides. The appeal is against imposition of redemption fine of Rs. 50,000/ - and penalty of Rs. 10,000/ - on the ground that the appellants misdeclared the impugned Gasket and claimed classification under sub -heading 8484.90 whereas according to the department the correct classification would be under Heading 8485.90. We, however, find that the impugned goods which were initially taken into bond for warehousing have been subsequently cleared for home consumption paying duty applicable to project imports under Heading 98.01.

(2.) In view of the fact that the final classification has been done under Heading 98.01 and duty has been paid as applicable to project import goods, we are of the opinion that the dispute relating to classification under competing entries 8484.90 and 8485.90 is of no relevance and the confiscation, imposition of redemption fine and penalty are not warranted. As such, we set aside the impugned orders and allow the appeal with consequential benefit to the appellants.