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Issues involved: Appeal for restoration, reduction of redemption fine and penalty, consistency in applying rates.
Appeal Restoration: The Revenue filed an application for restoration of the appeal which was earlier dismissed for not signing or verifying the Memorandum of Appeal. The order dismissing the appeal was recalled as the necessary steps were taken. The Tribunal decided to proceed with deciding the case on its merits since similar appeals by Revenue on the same issue had already been decided. Reduction of Redemption Fine and Penalty: The Revenue appealed against the Commissioner (Appeals) Order which had reduced the redemption fine and penalty to 10% and 5% respectively. The Revenue argued that the margin of profit being 20% to 22%, the redemption fine and penalty were on the lower side and should be increased. The Commissioner (Appeals) had based their decision on a Tribunal's ruling and a subsequent decision by the Hon'ble Kerala High Court which imposed redemption fine and penalty at 10% and 5% respectively. Consistency in Applying Rates: The Tribunal cited previous cases where similar rates of redemption fine and penalty were upheld. It referenced a decision by the Hon'ble Kerala High Court emphasizing the importance of maintaining consistency in applying rates to avoid discrimination. The Tribunal found no reason to deviate from this principle and hence dismissed the appeal. This judgment highlights the importance of following proper procedures in appeals, the consideration of profit margins in determining fines and penalties, and the significance of consistency in applying rates to ensure fairness and avoid discrimination.
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