Redemption Fine & Penalty Levied for Misdeclaring Restricted ‘Natural Garnet’ as ‘Abrasive Grain

Tirupati Enterprises Vs Commissioner of Customs (CESTAT Ahmedabad)

Redemption fine u/s 125 and penalty u/s 114 was leviable on exported goods misdeclared as “Natural Abrasive Grain” instead of restricted “Natural Garnet”

Conclusion: Since assessee had misdeclared restricted goods as general abrasives to circumvent export restrictions under DGFT policy and therefore assessee was liable for redemption fine of Rs. 10,00,000 under Section 125 and the penalty of Rs. 42,00,000 under Section 114(i) of the Customs Act, 1962.

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