2008 (4) TMI 559 - AT - Customs

Quantum of Redemption fine and penalty - Valuation - margin of profit - confiscation of old photocopiers of comparable value -

Summary

Issues:
1. Enhanced assessable value of imported goods
2. Confiscation of goods under Customs Act
3. Imposition of fine and penalty

Analysis:
1. The appeal was filed against an order by the Commissioner of Customs enhancing the assessable value of old and used photocopiers from the declared value. The goods were found to be in excess in terms of quantity and value, leading to a proposal for confiscation under relevant sections of the Customs Act. The Commissioner's order confiscated the goods and imposed a fine and penalty on the importer. The appellant did not challenge the valuation but sought a reduction in the fine and penalty, citing precedents where fines and penalties were lowered in similar cases.

2. The Counsel for the appellant referenced previous cases where fines and penalties were reduced for similar confiscations of old photocopiers. The Tribunal noted that the adjudication order lacked a reliable basis for the fine imposed. It was observed that fines in such cases are typically equal to the margin of profit, which was estimated at around 25% without market inquiries. Considering the value of the goods, the Tribunal determined that a fine of Rs. Four lakhs and a penalty of Rs. Two lakhs would be appropriate, thereby modifying the original order.

3. The Tribunal emphasized the need for a reasonable basis for determining fines in confiscation cases, highlighting the lack of market inquiries in the present case. By referencing previous judgments and considering the margin of profit, the Tribunal adjusted the fine and penalty to align with precedents and the facts of the case. The appeal was disposed of by modifying the fine and penalty, providing relief to the appellant based on established principles and comparable cases.