2000 (1) TMI 735 - AT - Customs

Summary

Issues:
Import of old and used automobile diesel engines, valuation of goods, confiscation, redemption fine, penalty imposition, comparison with previous cases, application for license, reduction of fine and penalty.

Analysis:

1. Valuation and Confiscation:
The appellants imported old and used automobile diesel engines along with other related items. The value of the goods was declared to be Rs. 13,38,616/-. The Commissioner accepted the valuation but confiscated the goods, allowing redemption on payment of a fine of Rs. 30 lakhs. The issue revolved around the correctness of the valuation and the confiscation of the goods.

2. Redemption Fine and Penalty Imposition:
The Commissioner imposed a redemption fine of Rs. 30 lakhs and a penalty of Rs. 15 lakhs. The appellants argued that the fine was excessive compared to similar cases where fines were around 100% of the consignment value. The Tribunal analyzed the provisions of section 125 of the Customs Act, stating that the number of imports of similar goods does not affect the fine calculation. The Tribunal reduced the fine to Rs. 13 lakhs and the penalty to Rs. 10 lakhs, considering the substantial increase compared to previous cases.

3. Comparison with Previous Cases:
The appellants highlighted previous cases where redemption fines were lower for similar goods. The Tribunal emphasized consistency in fine imposition for similar cases and noted that market values had not significantly changed between different import periods. The comparison with previous cases played a crucial role in determining the reasonableness of the redemption fine and penalty.

4. Application for License and Burden of Demurrage:
The appellants claimed they had applied for a license for the importation of goods. However, the Tribunal found it unlikely that the license could have been obtained before the goods arrived. Additionally, the appellants argued that the burden of demurrage was already on them. These factors were considered in the context of justifying the penalty imposition.

5. Final Decision:
After considering all arguments and submissions, the Tribunal reduced the redemption fine from Rs. 30 lakhs to Rs. 13 lakhs and the penalty from Rs. 15 lakhs to Rs. 10 lakhs. The appeal was dismissed with these modifications, indicating a balance between the seriousness of the offense and the proportionality of the fines imposed.