In the case of import of old and used worn clothing articles which restricted item as per Foreign Trade Policy, the Kolkata bench of the Customs Excise & service tax appellate tribunal(CESTAT) has dismissed the enhancement of the redemption fine.
M/s. S K P Enterprises, the respondent imported old and used worn clothing, completely fumigated which were assessed after value enhancement, confiscation and imposition of redemption fine and penalty.
The declared value was enhanced from US$ 0.45 per kg to US$ 0.60 per kg and redemption fine and penalty were also imposed on the ground that the old and used worn clothing articles are classifiable under Tariff Item No.63090000 of the First Schedule of the Act and is restricted item for import as per Para 2.17 of Foreign Trade Policy 2009-2014, read with ITC HS Classification of import and export items 2009-2014.
Import of goods under Tariff Item No.63090000 is restricted and their import is allowed only against the valid specific license.The Adjudicating Authority has imposed redemption fine and penalty at the rate of 19.5% & 7.8% of the assessed value respectively. The Revenue filed appeal for enhancement of redemption fine and penalty.
In light of the observation of Tribunal in the case of Venus Traders Vs. Commissioner of Customs (Import), two member bench of MR. R. Muralidhar, Member (Judicial) and MR. Rajeev Tandon, Member (Technical) held that “the redemption fine and penalty imposed on the respondents by the adjudicating authority is sufficient to meet the end of justice. Therefore, the redemption fine and penalty confirmed by the adjudicating authority are upheld.”
While dismissing the appeal, the CESTAT upheld the impugned order and the same are upheld.
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