Customs – Cestat New Delhi: Wrong claim of export benefit under MEIS is due to mis-advised by the CHA, however, appellant is responsible to understand the eligibility and the conditions before making a claim for the export benefits – Liable for redemption fine and penalty but at reduced rare – Appeal partly allowed [Order attached]
Order Date – 10 January 2023
Parties: M/s Cipra Enterprises Vs Commissioner of Customs- (Export), New Delhi
- The Appellant, M/s Cipra Enterprises, filed Shipping Bill for export of ‘Blood Glucose Test Strips’ and ‘Freestyle Sensor’ under MEIS scheme.
- On investigation it appeared to Revenue that the Appellant had mis-declared the ‘Country of Origin’ in the export document so as to claim the export incentives under MEIS. The classification of Blood Glucose Test Strips was mis-declared as CTH 30069100 instead of the correct CTH 38220090.
- Accordingly disallowed the MEIS benefit and ordered confiscation of the goods with an option to redeem the goods on payment of fine, also imposed penalty.
- Whether the confiscation of the goods and penalty imposed under Section 114(iii) and redemption fine are in order?
- The Tribunal held that the appellant made a wrong claim of export benefit under MEIS, being mis-advised by the CHA. However, it was the responsibility of the appellant to understand the eligibility and the conditions before making a claim for the export benefits.
- It was also held that the goods were not prohibited goods, and the fine and penalty are on the higher side. Accordingly, the Redemption fine is reduced from Rs. 4 lakhs to Rs. 1 lakh and Penalty under Section 114(iii) is reduced from Rs. 50,000/- to Rs. 25,000/-.
- Hence the appeal is partly allowed.