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2011 (9) TMI 424 - AT - CustomsPhotocopier Imported - Chartered Engineer was of the opinion that machine 8-9 years Old - Confiscation ordered but allowed to be redeemed on fine of 5, 00, 000 and penalty Rs 2, 00, 000 - Commissioner (Appeals) reduced fine and penalty - Held - leniency by Commissioner (Appeals) is not arbitrary appeal was set aside.
Issues:
Import of used photocopiers, assessment of assessable value, confiscation of goods, redemption fine, penalty imposition, market value determination, discretion of Commissioner (Appeals). Analysis: The case involves an appeal against the order of the Commissioner (Appeals) regarding the import of 126 used photocopiers. The declared assessable value was disputed, and the original authority enhanced it based on examination by a chartered engineer. The goods were confiscated due to the lack of a required license for importing second-hand photocopiers. However, redemption was allowed on payment of a fine and penalty. The Commissioner (Appeals) upheld the confiscation but reduced the redemption fine and penalty considering previous CESTAT orders and the specific circumstances of the case. The grounds of appeal argued for an increase in the redemption fine and penalty due to the second importation of goods and suggested that the fine and penalty should be based on market value and estimated profit margin. However, the Commissioner (Appeals) exercised discretion and reduced the fines after considering all facts and circumstances. The decision was not deemed arbitrary as it was based on the age of the machines and the engineer's findings on their residual life. The Commissioner (Appeals) upheld the confiscation but showed leniency in reducing the redemption fine and penalty, indicating a fair assessment of the situation. Ultimately, the Tribunal found no valid reasons to interfere with the Commissioner (Appeals)'s order. The appeal by the department was rejected, affirming the decision on the redemption fine and penalty reduction. The judgment highlights the importance of considering all aspects of a case, including market value, profit margin, and specific circumstances, in determining fines and penalties in customs cases involving imported goods.
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