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2011 (10) TMI 54 - AT - CustomsRedemption fine and penalty - import of marble slabs - Statements were recorded and the value of the goods were enhanced to Rs.24,96,999/- instead of declared value of Rs.16,92,706/-. Redemption fine of Rs.12,00,000/- was also imposed - due to cracks, hole, variation in colour and basic bargaining an allowance upto 40% is given as per trade practice in marble. - the appellant has not disputed the quantity and paid duty accordingly- redemption fine and penalty is not imposable under Section 112(a) of the Customs Act, 1962 - The quantum of redemption fine should have certain base i.e. Market survey. On which basis, the redemption fine is imposed is totally absent in the impugned order - Appeal is allowed by way of remand.
Issues: Challenge of redemption fine and penalty under Customs Act, 1962.
The appellant challenged the imposition of redemption fine and penalty under the Customs Act, 1962. The appellant declared 673.70 SQM of marble slabs in the Bill of Entry, but upon examination, it was found to be 993.91 SQM, an excess of 320.11 SQM. The value of the goods was enhanced to Rs.24,96,999 from the declared Rs.16,92,706, and a redemption fine of Rs.12,00,000 and a penalty of Rs.3,00,000 were imposed. The appellant contended that they had imported only the declared quantity and had not disputed it, paying duty accordingly. The appellant argued that due to cracks, holes, color variation, and bargaining, an allowance of up to 40% is customary in the marble trade. The appellant cited precedents and sought a reduction in the redemption fine and a waiver of the penalty. Upon review, the Tribunal noted that the appellant did not dispute the enhanced value determined by the adjudicating authority. However, the basis for imposing the redemption fine of Rs.12,00,000 was unclear. The Tribunal emphasized that the quantum of the redemption fine should have a specific basis, such as a market survey, which was absent in the impugned order. As a result, the matter was remanded back to the adjudicating authority to determine the redemption fine based on the formula outlined in Section 125 of the Customs Act. The issue of penalty was also to be reconsidered by the adjudicating authority, providing the appellant with a reasonable opportunity to present their case. The appeal was allowed through remand.
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