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Challenge against enhancement of value of second-hand sulzer shuttleless projectile weaving looms imported; Dispute regarding year of manufacturing and valuation; Confiscation of machines; Imposition of redemption fine and personal penalty. Analysis: The appeals before the Appellate Tribunal CESTAT, New Delhi involved a challenge against the enhancement of the value of second-hand sulzer shuttleless projectile weaving looms imported by the appellants. The dispute primarily revolved around the year of manufacturing of the machines and their valuation. The adjudicating authority determined that the machines were more than 10 years old and undervalued, leading to the imposition of penalties and fines. In one case, the declared value of two imported machines was increased from Rs. 25,62,741.68 to Rs. 29 lakhs, with confiscation of the machines, a redemption fine of Rs. 3 lakhs, and a personal penalty of Rs. 5 lakhs imposed on the importer. Similarly, in another case, the assessable value of two machines was enhanced from Rs. 25,76,693.32 to Rs. 29.50 lakhs, resulting in confiscation, a redemption fine of Rs. 3 lakhs, and a personal penalty of Rs. 5 lakhs. The main contention raised by the appellants was that the same Commissioner had accepted lower declared values in previous similar cases without imposing penalties. The appellants highlighted a Press Release from the Textile Commissioner allowing the import of second-hand sulzer looms of specific models more than 10 years old. The appellants argued that the Commissioner's actions were inconsistent with his previous decisions and industry demands, which supported the import of such machinery without restrictions based on the EXIM Policy. The Appellate Tribunal found merit in the appellants' contentions, stating that if the Commissioner had accepted lower declared values in previous cases without penalties, there was no justification for rejecting the values declared by the current appellants. The Tribunal noted that the circumstances in the current cases were not different from previous orders where only a redemption fine without any penalty was imposed. Consequently, the Tribunal held that assessment should be based on the declared values by the appellants, reducing the redemption fine to Rs. 1 lakh for each appellant and vacating the imposition of penalties. The impugned orders were modified accordingly, and the appeals were partly allowed.
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