2005 (10) TMI 482 - AT - Customs

Summary

Issues Involved:

1. Confiscation and valuation of imported goods.
2. Confirmation of differential duty.
3. Imposition of personal penalties.
4. Confiscation of foreign currency.
5. Reduction of redemption fine and penalties.

Detailed Analysis:

1. Confiscation and Valuation of Imported Goods:

The Commissioner ordered the confiscation of Sony Digital Video Recorder, Sony Digital Audio Recorder, and Power Cable under Section 111(l) and (m) of the Customs Act, 1962. The goods were assessed at Rs. 27,69,000/-. The Tribunal upheld the confiscation but found the redemption fine of Rs. 15,00,000/- excessive. The fine was reduced to Rs. 7,00,000/-, considering the depreciation of electronic items and the margin of profit.

2. Confirmation of Differential Duty:

The Commissioner confirmed differential duty of Rs. 13,59,500/- on the assessable value of Rs. 27,69,000/-, after adjusting Rs. 25,000/- paid as duty by Shri Gaurang Goradia. The Tribunal upheld this duty confirmation.

3. Imposition of Personal Penalties:

- Shri Gaurang Goradia: The Commissioner imposed a personal penalty of Rs. 10,00,000/- under Section 112(a) and (b) of the Customs Act, 1962. The Tribunal reduced this penalty to Rs. 1,00,000/- due to the lack of reasons provided for the higher amount.

- Shri Devang Goradia: The Commissioner imposed a personal penalty of Rs. 2,50,000/- under Section 112(a) and (b). The Tribunal reduced this penalty to Rs. 1,00,000/- considering his involvement was limited to profiting from the mis-declaration.

- Shri Praveen Arora: The Commissioner imposed a personal penalty of Rs. 25,00,000/- under Section 112(a) and (b). The Tribunal found this excessive and reduced it to Rs. 1,00,000/-.

4. Confiscation of Foreign Currency:

The Commissioner ordered the confiscation of UK Sterling pound 45,000/- equivalent to Rs. 31,50,000/- under Section 111(d), (e), and (h) of the Customs Act, 1962. The Tribunal did not uphold the confiscation and penalty liabilities under Section 113 and Section 114, citing contradictions and lack of corroborated evidence regarding the procurement and smuggling of the foreign currency.

5. Reduction of Redemption Fine and Penalties:

The Tribunal reduced the redemption fine from Rs. 15,00,000/- to Rs. 7,00,000/-. Penalties on Shri Gaurang Goradia, Shri Devang Goradia, and Shri Praveen Arora were reduced to Rs. 1,00,000/- each, considering the lack of detailed reasoning and evidence for higher penalties.

Conclusion:

The appeals were partly allowed. The Tribunal upheld the confiscation and duty confirmation but reduced the redemption fine and personal penalties significantly. The confiscation of foreign currency and related penalties were set aside due to inconsistencies and lack of evidence.