The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai Bench held that malafide misclassification of goods to evade duty and upheld the penalty and confiscation.
Shri Laxmi Menon appeared for the Appellant and Shri Bhushan Kamble appeared for the Respondent.
The appeal was filed in challenging the imposition of a redemption fine of Rs.15 lakhs u/s.125, the Customs Act, 1962 and a penalty of Rs.5 lakhs u/s. 112(a) ibid for misclassification of goods imported by them.
An Amphibious bus was imported by M/s.Scania Commercial Vehicles India Pvt. Ltd., the Appellant The total invoice value was shown as Rs.2,99,96,047/- and assessable values as Rs.3,02,96,007. The appellant claimed the classification of the amphibious bus under CTH 89019000 which pertains as per chapter Heading for “Ships, boats and floating structures” with the rate of duty @10%BCD+Nil CVD +Nil Addl.CVD+2% E.Cess+1% H.S. Cess. On 16.2.2017 the Appellant paid a custom duty of Rs.44,57,149/-.
The Adjudicating Authority re-classified the Amphibious bus imported by the appellant under CTH 8703 and confirmed the confiscation under section 111(m) of the Customs Act, 1962. Further imposed a redemption fine of Rs.15 lakhs u/s. 125(1) along with a penalty of Rs.10 lakhs u/s. 112(a) on the appellant.
The vehicle in issue was an amphibious bus which was a specialized motor vehicle which runs on the road as well as on water and the heading 8703 covers “ Motor cars and another motor vehicle principally designed for the transport of persons.
It was observed that the appellant was well aware of the correct classification of the imported goods and no other reason for the appellant to misclassify the amphibious bus in the Bill of entry but for the malafide intention to evade the duty.
Mr Ajay Sharma, member (judicial) observed that the appellant had misclassified the goods to evade payment of appropriate Custom duty and are liable for confiscation under Section 111(m) of the Customs Act, 1962. The Tribunal upheld the penalty under Section 112(a) and dismissed the appeal filed by the appellant.
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