Non-compliance with LMPC Rules Leads to Confiscation of Goods: CESTAT Reduces Redemption Fine and Penalty [Read Order]
The CESTAT considered the delay in obtaining the Registration Certificate as procedural, reduced the redemption fine to Rs. 30,000 and the penalty to Rs. 5,000, while upholding the confiscation
![Non-compliance with LMPC Rules Leads to Confiscation of Goods: CESTAT Reduces Redemption Fine and Penalty [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/03/CESTAT-CESTAT-Chennai-LMPC-Rules-Goods-confiscation-due-to-LMPC-non-compliance-TAXSCAN.jpg "Non-compliance with LMPC Rules Leads to Confiscation of Goods: CESTAT Reduces Redemption Fine and Penalty [Read Order]")
The Chennai Bench of Customs,Excise and Service Tax Appellate Tribunal (CESTAT) reduced the redemption fine and penalty in a case where the assessee, failed to comply with the labelling requirements under the Legal Metrology (Packaged Commodities)[LMPC] Rules, leading to the confiscation of Circular Saw Blades under Section 111(d) of the Customs Act, 1962 Chadhuram...
The Chennai Bench of Customs,Excise and Service Tax Appellate Tribunal (CESTAT) reduced the redemption fine and penalty in a case where the assessee, failed to comply with the labelling requirements under the Legal Metrology (Packaged Commodities)[LMPC] Rules, leading to the confiscation of Circular Saw Blades under Section 111(d) of the Customs Act, 1962
Chadhuram Enterprises ,appellant-assessee,appellant filed a Bill of Entry on 23.12.2014 for the clearance of Circular Saw Blades, but the goods were found to have no labels. The assessee stated they had applied for registration under the LMPC Rules but requested adjudication without a show cause notice and a waiver of fine and penalty.
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In the Order-in-Original No. 35933/2015 dated 24.03.2015, the adjudicating authority confiscated the goods under Section 111(d) of the Customs Act, 1962, imposed a redemption fine of Rs. 5,50,000, and a penalty of Rs. 50,000 under Section 112(a). This was because the assessee had failed to produce the required Registration Certificate under the LMPC Rules.
The assessee appealed to the Commissioner (Appeals), who reduced the fine and penalty but upheld the confiscation. The assessee then filed the present appeal.
The two member bench comprising P.Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) found that the assessee did not comply with the labelling requirements of the LMPC Rules, leading to the confiscation of the goods under Section 111(d). The delay in obtaining the Registration Certificate was seen as procedural, and given that the assessee had applied for registration, the CESTAT reduced the redemption fine to Rs. 30,000 and the penalty to Rs. 5,000.
In short,the appeal filed by the assessee was partly allowed.
To Read the full text of the Order CLICK HERE
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M/s.Chadhuram Enterprises vs The Commissioner of Customs (Seaport-Import) , 2025 TAXSCAN (CESTAT) 355 , Customs Appeal No. 41504 of 2015 , 03 January 2025 , Shri A.K. Jayaraj , Shri M. Selvakumar