2006 (2) TMI 554 - AT - Customs

Summary

Issues:
Importation of Concentrates of Alcoholic Beverages without a license, Confiscation of goods, Imposition of high redemption fine based on profit margin calculation.

Analysis:
The case involved the importation of Concentrates of Alcoholic Beverages by an appellant company without the required license, leading to proceedings for confiscation of the goods. The Commissioner of Customs imposed a redemption fine of Rs. 55.00 lakh, based on a profit margin calculation derived from the selling prices of whisky bottled in India from similar concentrates. The appellant argued that this method was incorrect as the goods imported were concentrates, not bottled whisky, and that the advice received from the Revenue justified a lower fine.

Upon review, it was found that the appellant had sought clarification regarding the licensing requirements before importation, and the Assistant Commissioner confirmed that the goods were freely importable without a license as long as they were not for direct human consumption. As the goods were concentrates, not intended for direct human consumption, the importation without a license was deemed a technical offense. Therefore, the heavy redemption fine was considered unjustified, and the fine was reduced to a token amount of Rs. 5.00 lakh. The appeal was rejected except for the modification in the quantum of the redemption fine.