Avasarala Technologies Ltd. Vs Commissioner of Customs (CESTAT Bangalore)
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Bangalore, has ruled in the case of Avasarala Technologies Ltd. Vs Commissioner of Customs that the provisions for confiscation under Section 113(h)(i) of the Customs Act, 1962, apply only when goods have been actually entered for exportation. The Tribunal set aside the confiscation of goods and the penalty imposed on the appellant, an 100% Export Oriented Unit (EOU), finding that a declared shortage in an export consignment was due to a clerical error and not a deliberate attempt at mis-declaration or illicit clearance.
The case originated when Avasarala Technologies Ltd. filed three shipping bills in March 2013 for the export of parts of rubber processing machines. During the examination of the goods against two of the shipping bills, Customs officials found a significant shortage: only 15 sets of parts were present, instead of the declared 43 sets, representing a shortage of 28 sets (approximately 66% of the declared quantity) and a weight shortage of 353 kgs. A show-cause notice was issued, proposing confiscation of the short-shipped goods valued at $\text{Rs. }12,98,464/-$ under Section 113(h)(i) and imposing a penalty under Section 114(iii) of the Customs Act. The goods were subsequently confiscated, and a redemption fine and penalty were imposed by the adjudicating authority, a decision which the Commissioner (Appeals) upheld.
