Midas Fertchem Impex Pvt Ltd. Vs Principal Commissioner of Customs (CESTAT Delhi)
CESTAT Delhi held that wrong classification of goods or claiming of ineligible exemption notification doesn’t amount to mis-declaration or mis-statement.
Facts-
These appeals arise out of two impugned orders and are on the same issue of classification of the goods described as “0.1 percent natural brassinolide fertiliser” and classified under Customs Tariff Heading 3101 00 99, 3105 10 00 and 3105 90 90 by the appellants and which is classifiable under CTH 3808 93 40 according to the Department.
Conclusion-
Simply because the importer claimed a wrong classification or claimed an ineligible exemption notification or in some cases, has not done the valuation fully as per the law, it cannot be said that the importer mis-declared. As far as the description of the goods, quantity, etc. are concerned, the importer is bound to state the truth in the Bill of Entry. Thus, simply claiming a wrong classification or an ineligible exemption notification is not a mis-statement.
As far as section 111(d) is concerned, there is nothing on record to show that there was any prohibition on import of the goods and so it does not apply to the present case. As far as 111(m) is concerned, we do not find any mis-declaration of the goods, although they deserved to be classified under CTH 3808 as “plant growth regulators” but all the documents including literature was made available to the officer during assessment. We, therefore, also find section 111(m) does not apply. Consequently, penalties u/s. 112 cannot be sustained.
FULL TEXT OF THE CESTAT DELHI ORDER
1. These appeals arise out of two impugned orders and are on the same issue of classification of the goods described as “0.1 percent natural brassinolide fertiliser” and classified under Customs Tariff Heading1 3101 00 99, 3105 10 00 and 3105 90 90 by the appellants and which is classifiable under CTH 3808 93 40 according to the Department. These appeals cover 28 consignments imported between 13.12.2012 to 16.05.2015 by M/s Midas Fertchem Impex Pvt Ltd. and 60 consignments imported by M/s Midas Import Corporation between 04.12.2010 to 27.01.2015. Smt. Rashmi Jain and Shri Manish Jain are the Directors of M/s Midas Fetchem Impex Pvt Ltd. and are assailing the penalty of Rs. 4 Lakhs on each imposed under section 112 (a) of the Customs Act, 1962. Smt Rashmi Jain, is also the authorized signatory Midas Import Corporation and she is assailing the penalty of Rs. 6 lakhs imposed on her under section 112(a) of Customs Act, 1962. The details of these appeals and impugned orders and the show cause notices are as below:
