2009 (4) TMI 718 - AT - Customs

Summary

Issues involved: Import of used photocopiers contravening Exim Policy, confiscation of goods, imposition of fine and penalty under Customs Act.

Import of used photocopiers contravening Exim Policy: M/s. Sagar Enterprises imported used photocopiers despite the requirement of an import license as clarified by DGFT Notification No. 31/05. Four earlier consignments were confiscated for contravening the Exim Policy, with the importer paying redemption fine and penalty under Section 112(a) of the Customs Act.

Confiscation of goods and imposition of fine and penalty: The Commissioner confiscated the photocopiers under Section 111(d) and offered redemption on payment of a fine of Rs. 3.8 lakhs, imposing a penalty of Rs. 2.3 lakhs under Section 112(a) of the Act. The value declared by the importer was enhanced, leading to the appellants seeking a reduction in the fine and penalty imposed.

Reduction of fine and penalty: The appellants sought a reduction in fine and penalty based on a previous Tribunal order where similar reductions were granted in a comparable case. The Tribunal found that the Commissioner had imposed a higher fine and penalty considering the appellants' past conduct of importing contraband goods. However, the Tribunal held that imposing fines solely based on past conduct without considering potential profits was not justified. Therefore, the fine and penalty were reduced to Rs. 3,08,000/- and Rs. 1,54,000/- respectively, in line with previous Tribunal orders. The appeal was allowed.