Order Date – 10 January 2023

Parties: M/s Cipra Enterprises Vs Commissioner of Customs- (Export), New Delhi

Facts – 

• 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.

Issue – 

• Whether the confiscation of the goods and penalty imposed under Section 114(iii) and redemption fine are in order?

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.