Durga Computers Vs Commissioner of Customs (Import) (CESTAT Mumbai)
Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai, has set aside a redemption fine of Rs. 3,00,000/- and a penalty of Rs. 2,00,000/- imposed on Durga Computers. The tribunal’s decision, pronounced on May 14, 2025, affirmed that once goods are allowed to be re-exported, the imposition of a redemption fine is not justified, and in this specific case, the penalty was also unwarranted due to the supplier’s error.
The case originated from a Bill of Entry filed by Durga Computers on May 4, 2019, declaring goods as “Hynix 2GB DDR2 800 Memory Module (RAM).” Although an “out of charge” order was issued on May 7, 2019, the Customs’ CIU wing examined the goods the following day and found them to be misdeclared, bearing a sticker “Hynix 2GB DDR2 PC2 6400U Korea.”
During his statement recorded on May 23, 2019, Shri Dinesh Jain, proprietor of Durga Computers, stated that the wrong package was dispatched due to a mistake by the supplier. Subsequently, during a personal hearing on February 4, 2020, Durga Computers presented a letter from the supplier confirming their readiness to take the goods back and expressed their willingness to re-export the consignment.
