Commissioner of Customs (Port) Vs S. S. Traders (CESTAT Kolkata)
CESTAT Kolkata held that valid specific license required for import of old and used worn clothing articles. Accordingly, redemption fine @10% and penalty @5% imposed for failure to comply with licensing requirement.
Facts- The respondent imported old and used worn clothing, completely fumigated which were assessed after value enhancement, confiscation and imposition of redemption fine and penalty.
The declared value was enhanced from US$ 1.10 per kg to US$ 1.316 per kg and redemption fine and penalty were also imposed on the ground that the old and used worn clothing articles are classifiable under Tariff Item No.63090000 of the First Schedule of the Act and is a restricted item for import as per Para 2.31 of Foreign Trade Policy 20152020 and para 2.33 & 2.33a of the Handbook of Procedures (HBP). Import of goods under Tariff Item No.63090000 is restricted and their import is allowed only against a valid specific license.
The Appellate Authority has imposed redemption fine (RF) and penalty (PP) at the rate of 10% and 5%, reducing the RF/PP from an average of 20-35% & 10-20% respectively, as imposed by the adjudicating authority. Being aggrieved, revenue has preferred the present appeal.
