Case Law Details
Commissioner of Customs (Port) Vs Karan Impex (CESTAT Kolkata)
Introduction: In a recent order by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Kolkata, the case of Commissioner of Customs (Port) vs. Karan Impex took center stage. The appeal revolved around the redemption fine and penalty imposed on Karan Impex for the import of old and used worn clothing. The adjudicating authority had enhanced the declared value, leading to confiscation and the imposition of redemption fine and penalty.
Detailed Analysis: Karan Impex had imported old and used worn clothing, fumigated and assessed after value enhancement. The declared value per kg was increased from US$ 0.45 to US$ 0.60. Additionally, redemption fine and penalty were levied based on the classification of the items under Tariff Item No.63090000 and the restrictions imposed by the Foreign Trade Policy 2009-2014.
The Adjudicating Authority imposed a redemption fine and penalty at rates of 19.5% and 7.8%, respectively, of the assessed value. The Revenue appealed, seeking an enhancement of the redemption fine and penalty.
The Tribunal referred to a similar case involving Venus Traders, wherein it observed that Section 111(m) of the Customs Act, which deals with goods not corresponding to the entry made, might not be applicable when proceedings are initiated before the filing of bills of entry. The Tribunal upheld the confiscation under Section 111(d) for the import of ‘old and serviceable garments’ without the required import license. However, it reduced the redemption fine and penalty, considering the failure to comply with licensing requirements.
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