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- Appeal against Order-in-Original confiscating goods and imposing fines and penalties. Analysis: The appeal was filed against an Order-in-Original confiscating Chinese white Garlic and imposing fines and penalties on the importers. The Commissioner had confiscated the goods and allowed redemption on payment of a fine of Rs. 13 lakhs, in addition to a penalty of Rs. 1 lakh and appropriate duty on the goods. The appellant argued that the redemption fine was disproportionately high, amounting to 82.2% based on the value of Rs. 60 per kg, while market prices ranged from Rs. 11 to Rs. 32.50 per kg. The appellant contended that the CIF value should not exceed Rs. 30 per kg after deducting post-importation charges. The Commissioner's valuation method was challenged, citing the Customs Act's definition of market price and industry publications showing lower prices for Chinese Garlic. Previous Tribunal decisions reducing redemption fines were also highlighted by the appellant. The Departmental Representative reiterated the Commissioner's findings, stating that the local market price for wholesale trade was considered at an average of Rs. 60 per kg, with a profit margin estimated at 85%. However, upon review, the Tribunal found merit in the appellant's arguments. The Tribunal noted discrepancies in the market prices cited and acknowledged the accepted value of Rs. 30.22 per kg. Considering the appellant's assertion of a 26% profit margin based on a market price of Rs. 44 per kg, the Tribunal concluded that the redemption fine was excessive. Citing previous Tribunal decisions, the redemption fine was reduced from Rs. 13 lakhs to Rs. 3.50 lakhs. Regarding the penalty imposed, the Tribunal found it to be reasonable, amounting to less than 10% of the value. Consequently, the Tribunal upheld the penalty decision. In light of the above analysis, the impugned order was modified, reducing the redemption fine and maintaining the penalty, with any consequential relief to be granted as per the law.
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