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Issues involved: Assessment of value for imported goods, contravention of Foreign Trade Policy, redemption fine, penalty under Section 112(a) of the Act.
Assessment of value: The appellant imported photocopiers declaring a lower value, but the Chartered Engineer assessed the goods at a higher value. The original authority determined the assessable value at the higher amount, leading to confiscation for contravention of the Foreign Trade Policy and misdeclaration of value. Contravention of Foreign Trade Policy: The Commissioner upheld the original authority's decision based on a CBEC Circular prohibiting importers of second-hand machinery from making a profit on imports. The enhanced assessable value was deemed appropriate, as per the Circular's instructions. Redemption fine and penalty: The appeal challenged the 100% increase in value and the high redemption fine and penalty imposed. The appellant argued that the fines were excessive compared to profit margins on similar imports. The appellant sought a reduction in the fine and penalty, which had been reduced in previous similar cases by the Tribunal. Decision: The Tribunal accepted the enhanced value for assessment but considered the redemption fine and penalty excessive. While upholding the confiscation and penalties as per law, the Tribunal reduced the redemption fine and penalty to 15% of the assessable value each, citing the need for a suitable deterrent penalty. The appeal was disposed of with the revised fines, and related applications were also resolved.
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