2009 (3) TMI 1045 - AT - Customs

Summary

Issues involved: Appeal against Order of the Commissioner (Appeals) regarding confiscation of imported old and used Photocopiers, enhancement of declared value, imposition of redemption fine, and penalty.

Confiscation of goods without required license:
The Respondent imported old and used Photocopiers, declared value enhanced by Original Authority, goods confiscated for lack of required import license. Commissioner (Appeals) upheld confiscation due to violation of licensing condition. However, disagreed with value enhancement, reducing redemption fine from Rs. 1,50,000 to Rs. 10,000 and penalty from Rs. 1,20,000 to Rs. 5,000. Department appealed seeking restoration of Original Authority's Order.

Disagreement on value enhancement:
Commissioner (Appeals) found contravention of Foreign Trade Policy and Customs Act, leading to confiscation and penal action. Disagreed with Original Authority's acceptance of Chartered Engineer's valuation without proper reasoning. Held that transaction value declared by importer should be accepted for Customs Duty, citing precedents. Found no mala fide intention on importer's part, as goods description matched Bill of Entry. Reduced redemption fine and penalty based on leniency due to first-time import and lack of mis-declaration.

Decision and reasoning:
Appellate Tribunal rejected department's appeal, upholding Commissioner (Appeals) order. Found no valid reason to interfere with findings regarding confiscation and reduction of redemption fine and penalty. Acknowledged leniency shown by Commissioner (Appeals) considering circumstances of the case. upheld Commissioner (Appeals) decision due to lack of mis-declaration and first-time import factor.

Conclusion:
Department's appeal against Commissioner (Appeals) order rejected, confirming reduction of redemption fine and penalty. Commissioner (Appeals) decision upheld based on lack of mis-declaration and leniency shown towards first-time importer.