2007 (11) TMI 517 - AT - Customs

Quantum of Redemption fine and penalty - validity of revision of the declared value - Held that - confiscation had been ordered solely on the plea of non-obtaining import licence in terms of Foreign Trade Policy. The Tribunal has gone into a great detail with regard to such import and fixed redemption fine and penalty at 10% and 5% respectively of the value of the goods - Respectfully following ratio of the judgment rendered in the case of Rex Printing Press v. CC Kolkata 2004 (12) TMI 229 - CESTAT BANGALORE the redemption fine and penalty in these appeals are reduced to 10% and 5% respectively of the value of the goods which has already been fixed in all these three cases - appeal allowed in part.

Summary

Issues:
1. Challenge to the revision of declared value and imposition of fine and penalty based on valuation of imported goods.

Analysis:
1. The Customs Appeal No. 49/2005 challenged the valuation of monitors, mice, etc., imported by the appellants based on a Chartered Accountant's certificate, with a redemption fine of Rs. 2,50,000 imposed.
2. Customs Appeal No. 147/2006 involved the revision of value for second-hand electronic parts like computers, CPUs, monitors, etc., to Rs. 7,74,995, leading to confiscation, a redemption fine of Rs. 2,25,000, and a penalty of Rs. 75,000.
3. In Customs Appeal No. 148/2006, the value of second-hand monitors, CPUs, photo copier machine, etc., was revised to Rs. 11,16,228, with a redemption fine of Rs. 3,00,000 and a penalty of Rs. 75,000 imposed.
4. The appellants challenged the revised values and the fines/penalties. The Counsel referred to various judgments, including one reducing redemption fine and penalty to 10% and 5% in similar cases. The appellants did not contest the value revision but sought a reduction in the fines/penalties.
5. The learned DR argued for confirming the redemption fine and penalty since the valuation was not contested by the appellants.
6. The Tribunal, after considering submissions, noted that the appellants withdrew the plea challenging valuation. The Tribunal referred to a judgment reducing redemption fine and penalty to 10% and 5% in similar cases. The Tribunal modified the impugned orders, reducing redemption fine and penalty to 10% and 5% of the value of the goods, following the precedent set in similar judgments. The appeals were disposed of accordingly.