2013 (9) TMI 507 - AT - Customs

Confiscation of goods import of marble slab - Redemption Fine and Penalty imposed - appeal filed against the imposition of redemption fine and penalty Held that - confiscation of the goods was justified - the value of the goods was less than USD 50 and violation of the DGFT Notification - After considering the amount of declared value and it was a first time import on the facts and circumstances of the case the amount of redemption fine and penalty should be reduced appeal decided partly in favour of assessee.

Summary

Issues:
Imposition of redemption fine and penalty for violation of DGFT Notification on imported marble slabs.

Analysis:
The case involved the appellant importing marble slabs at a declared value of 12 18 USD per sq. mt., which was enhanced by the adjudicating authority to Rs.9,68,613/-, leading to confiscation of the goods and imposition of a fine and penalty. The Commissioner (Appeals) upheld the confiscation but set aside the enhanced value, prompting the present appeal specifically challenging the redemption fine and penalty.

The appellant's counsel argued that being a first-time importer, the appellant was unaware of the DGFT Notification, thus contesting the imposition of fine and penalty. Reference was made to a decision by the Hon'ble Calcutta High Court in a similar case. The counsel further contended that the fine and penalty should have been reduced considering the declared value of Rs.3.32 lakhs, emphasizing that the declared value represented the market value to prevent arbitrary value enhancements by customs authorities.

In response, the learned AR supported the Commissioner (Appeals)'s findings, highlighting the DGFT Notification's requirement of a minimum value of USD 50 per square meter for free import. The AR argued that the confiscation was justified due to the violation of this notification and that the market value considerations did not warrant a reduction in the redemption fine and penalty.

Upon review and analysis, the judge found that the adjudicating authority based the redemption fine and penalty on the enhanced value, which was later set aside by the Commissioner (Appeals) in favor of the declared value. Notably, the DGFT Notification specified a minimum value requirement for free import, which the appellant failed to meet, justifying the confiscation. Despite the regular importation of marble blocks/tiles in the trade, the judge deemed the appellant's lack of awareness of the notification unacceptable. Consequently, the Hon'ble Calcutta High Court's decision cited by the appellant was deemed inapplicable. Considering the circumstances, the judge reduced the redemption fine and penalty to Rs.50,000/- and Rs.30,000/- respectively, recognizing the first-time import status and the declared value as mitigating factors in the final disposition of the appeal.