2015 (3) TMI 554 - AT - Customs

Valuation of goods - whether the value declared in respect of the mis-declared goods shall be reduced to the extent of value of actual goods in the consignment - Held that - no court has power to legalise an illegality reducing mis-declared value to the actual market value of goods in the container attempted to be exported. Without touching the value, we only look into the quantum of redemption fine and penalty. Considering the mis-declared value, it appears that the redemption fine of ₹ 15 lakhs imposed in adjudication is on a higher side. Therefore, considering the nature of the goods involved normal profits attributable to the goods and the life of such goods, we reduce the redemption fine to ₹ 10 lakhs. So far as penalty is concerned, as a preventive dose and also a curative dose, that should be imposed to desist unlawful practices. Keeping in view the quantum of goods attempted to be exported and value thereof, the penalty is reduced to ₹ 5 lakhs from ₹ 8 lakhs - Decided partly in favour of assesse.

Summary

The Appellate Tribunal CESTAT NEW DELHI ruled that the value declared for mis-declared goods cannot be reduced to the actual market value. The redemption fine was reduced from Rs. 15 lakhs to Rs. 10 lakhs, and the penalty was reduced from Rs. 8 lakhs to Rs. 5 lakhs to deter unlawful practices.