Fortune Agro Impex Vs Commissioner of Customs (CESTAT Bangalore)
CESTAT Bangalore held that differential duty demand u/s. 28(4) of the Customs Act sustainable as investigation clearly established that product ‘Brush Cutter’ mis-declared and cleared as ‘Power Operated Reapers’.
Facts- The appellant M/s. Fortune Agro Impex filed Bill of Entry for clearance of 185 sets of Power Operated Reapers. On investigation, it was found that the appellant had cleared ‘Brush Cutters’ by mis-declaring them as ‘Power Operated Reapers’ and mis-classifying them as goods falling under Chapter Heading 8433 5900 instead of appropriate classification under Chapter Heading 8467 8990 thereby evading payment of duty.
The Commissioner rejected the classification under Chapter Heading 8433 5900 and reclassified the above products under Chapter Heading 8467 8990. The impugned order demanded differential duty of Rs. 53,37,203/- along with the interest u/s. 28(4) of the Customs Act, 1962. The goods were also confiscated and allowed to be redeemed on payment of redemption fine of Rs. 6,00,000/-. In addition, equivalent penalty was imposed u/s. 114A of Customs Act 1962, plus penalty of Rs.35,00,000/- u/s. 114AA of the Customs Act, 1962. Penalty of Rs.6,00,000/- u/s. 112 and penalty of Rs.4,00,000/- u/s. 114AA of the Customs Act, 1992, was also imposed on Shri Sreepada, Partner of the appellant-company. Hence, these appeals both against duty, confiscation and various penalties.
