2004 (8) TMI 571 - AT - Central Excise

Summary

Issues:
- Clearance of Rough Marble Blocks at a disputed value
- Confiscation under Section 111(d) of the Customs Act, 1962
- Redemption fine and penalty under Section 112(2)

Analysis:
1. Disputed Value and Confiscation:
- The appellant filed a Bill of Entry (BE) seeking clearance of Rough Marble Blocks at a declared value of Rs. 41,46,632, which was not accepted due to unavailability of Import Licence. The goods were valued at US $300 PMT (CIF) and were confiscated under Section 111(d) of the Customs Act, 1962, with a redemption fine of Rs. 19.00 lakhs and a penalty of Rs. 2.00 lakhs.

2. Comparison with Previous Cases:
- The Tribunal considered various precedents cited by the learned DR, emphasizing that fines and penalties should be determined based on the specific circumstances of each case. The Tribunal noted differences in facts between the present case and the case of Sophisticated Marble, highlighting the absence of repeated violations by the importers in the current case.

3. Precedent and Legitimate Expectation:
- The Tribunal emphasized the importance of following established practices and precedents in determining fines and penalties. Citing legal principles, the Tribunal stressed the need for fair application of discretion and equal treatment to all importers during the same period of imports of similar goods.

4. Presumption of Intended Use:
- The Tribunal addressed the issue of calculating margin and profit based on presumed intended use of the imported goods. It noted that the assumption of Marble Slabs being the only potential product from the imported Blocks was not conclusive and reduced the redemption fines and penalties to 20% and 5% of the CIF value.

5. Valuation Aspect:
- The valuation aspect was not pressed before the Tribunal, and no specific findings were made on this matter during the proceedings.

6. Final Decision:
- After considering all aspects, the Tribunal partially allowed the appeal by reducing the fine and penalty to 20% and 5% of the CIF value determined for the Rough Marble Blocks, based on the specific circumstances and legal principles discussed during the proceedings.