2013 (8) TMI 132 - AT - Customs

Reduction in redemption fine - old and used photocopier machines imported was imported without licence by bill of entry was low compared to the NIDB date for which that should be enhanced assessee filed an appeal - The fines and penalties imposed by the original authorities in these cases of repeated offences were not unreasonable or arbitrary or whimsical considering the fact that the authorities under the law have a duty cast upon them to prevent illegal imports and effectively implement the Import Policy validly laid down by the Government and to curb undervaluation and mis declaration apart from preventing repeated offences decided against assessee. Reduced penalty penalty on import without licence was reduced Held that - decided the lower appellate authority was totally unjustified in reducing the fines and penalties in these cases to very low levels - orders passed by the lower appellate authority were set aside as they relate to lowering of redemption fines and penalties and restore the orders passed by the original authorities adjudication was modified only on penalty aspect and order of ld. Commissioner (Appeals) was upheld on valuation aspect setting aside his order on fine and penalty in both cases decided in favour of revenue.

Issues Involved:
1. Enhancement of the value of imported old and used photocopier machines.
2. Imposition of redemption fine and penalty.
3. Confiscation of goods due to lack of import license.
4. Reduction of redemption fine and penalty by the Commissioner (Appeals).

Detailed Analysis:

1. Enhancement of the Value of Imported Old and Used Photocopier Machines:

The appellants challenged the enhancement of the value of old and used photocopier machines imported by them, arguing that the declared value should not have been disturbed. The customs authorities, however, found the declared values to be lower than the values indicated by the NIDB data and contemporaneous imports. The Chartered Engineer's assessment also showed higher values than those declared by the appellants. The customs authorities applied Rule 8 of the Customs Valuation Rules, 1988, to determine the value, which was not contested by the appellants. Consequently, the Tribunal upheld the valuation confirmed by the appellate authority, finding no reason to disturb the enhanced values.

2. Imposition of Redemption Fine and Penalty:

The appellants contended that neither redemption fine nor penalty was imposable. However, the customs authorities imposed fines and penalties based on the repeated import of goods without a license and the mis-declaration of values. The Tribunal referenced the case of Unitech Enterprises Versus Commissioner of Customs, Chennai, which emphasized that fines and penalties should deter illegal activities. The Tribunal found that the fines and penalties imposed by the adjudicating authority were justified given the appellants' habitual offenses. The Tribunal upheld the redemption fines but reduced the penalties to Rs.8,50,000/- for Appeal No. C-689/08 and Rs.8,00,000/- for Appeal No. C-688/08.

3. Confiscation of Goods Due to Lack of Import License:

The confiscation of goods was upheld as proper in law since the goods were imported without the necessary import licenses. The licensing regulation for old and used photocopiers became mandatory from 19.10.2005, making the import of such goods restricted without a license. The Tribunal cited the case of Unitech Enterprises, which supported the confiscation of second-hand photocopiers imported without a valid license. The Tribunal found no evidence from the appellants to contradict the need for a license or to justify the declared values.

4. Reduction of Redemption Fine and Penalty by the Commissioner (Appeals):

The Revenue challenged the reduction of redemption fines and penalties by the Commissioner (Appeals), arguing that the reductions were unwarranted given the habitual nature of the appellants' offenses. The Tribunal agreed with the Revenue, referencing the need for fines and penalties to act as a deterrent to illegal imports. The Tribunal reinstated the redemption fines as imposed by the adjudicating authority but modified the penalties, reducing them to Rs.8,50,000/- and Rs.8,00,000/- for the respective appeals.

Conclusion:

The Tribunal upheld the enhanced valuation of the imported photocopiers and the confiscation of goods due to the lack of import licenses. It found the imposition of redemption fines justified but reduced the penalties. The appeals were disposed of accordingly, with the Tribunal setting aside the Commissioner (Appeals)'s order on fines and penalties but upholding the valuation aspect.

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