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2011 (7) TMI 633 - AT - CustomsAppeal for enhancement of redemption fine and amount of penalty, lowered by Commissioner - assessee guilty of suppression of value of goods with intend to evade duty - Held that - As the appellant had suppressed the value of goods and since goods were imported in violation of the restriction imposed under EXIM Policy, penalty ordered by Commissioner (Appeals) is low. Hence, penalty is enhanced to Rs.50,000/- from Rs. 10,000/-. However, we find no ground to interfere with the amount of redemption fine.
Issues: Revenue's appeal against the impugned order for enhancement of redemption fine and penalty.
Analysis: The Revenue filed an appeal against the impugned order passed by the Commissioner seeking an increase in the redemption fine and penalty amount. The case pertained to the import of old and used photocopiers, which were restricted under the Import Policy. The Revenue alleged that the importer had suppressed the value of the goods to evade duty, leading to an increase in the declared value by approximately Rs. 3,14,000. The adjudicating authority confiscated the goods but allowed their release upon payment of a redemption fine of Rs. 1 lakh and a penalty of Rs. 1 lakh under Section 112 of the Customs Act. Subsequently, the Commissioner (Appeals) reduced the redemption fine to Rs. 60,000 and the penalty to Rs. 10,000. Upon considering the facts and circumstances of the case, including the suppressed value of approximately Rs. 3,14,000, the duty element was found to increase. Consequently, the Tribunal found no reason to interfere with the redemption fine amount. However, since the appellant had intentionally suppressed the value of the goods and imported them in violation of the restrictions under the EXIM Policy, the Tribunal deemed the penalty imposed by the Commissioner (Appeals) as insufficient. Therefore, the Tribunal decided to enhance the penalty from Rs. 10,000 to Rs. 50,000. As a result, the appeal filed by the Revenue was allowed, and the penalty amount was increased accordingly.
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