M/s Veekay Connectors Pvt. Ltd. Vs. Commissioner of Customs

Order date: 17 March 2023

Facts:                                                                  

• The appellant, M/s Veekay Connectors Pvt. Ltd., had filed a bill under section 46 of Customs Act, 1962 through their authorized custom broker under the invoice issued by PPI, Republic of Korea for clearance of goods declared as ‘PLC Splitter Module.’ The bill was assessed and were examined on 100% basis, and were found as per the invoice and bill of entry.
• The importer sought for custom exemption under No. 12/ 2012-Cus dated 17.03.2012, Sr. No. 376, List No. 21 & Sr. No. 15 where duty benefit is granted for "Microlens and Splitter” but the goods did not have lenses and hence, it did not meet the criteria for exemption. 
• Accordingly, show cause notice dated 19.05.2015 was issued to the appellant as to why the goods should not be confiscated under section 111 (m) of the Customs Act and why penalty be not imposed under section 112 and 114AA of the Customs Act. Since the goods were provisionally released redemption fine should not be imposed under section 125 of the Customs Act. SCN was confirmed by the adjudicating authority vide Order in Original dated 10.05.2016.

Issue:

• Whether the product declared as “PLC Splitter Module” is entitled to the benefit Duty Exemption under the notification ?

Order:

• The Tribunal observed that merely because the appellant sought for duty exemption  on the belief that the goods imported by him fall within the scope of the  exemption notification and the revenue took the view that the goods imported were not as per the specifications under the notification, it is not a case where goods have been improperly imported or mis-declared so as to confiscate the goods invoking section 111(m) of the Customs Act. 
• Consequently, the appellant was not granted duty exemption and the goods were provisionally released on payment of regular duty. There was no reason for confiscation of goods or redemption fine of Rs. 1,00,000/- or the penalty to be levied under the Customs Act.