2016 (10) TMI 224 - AT - Customs

Import of parts of old and used photocopier machines - Confiscation under section 111 of the Customs Act, 1962 - imposition of redemption fine under section 125 of the customs act, 1962 - imposition of penalty - import of used spares of photocopier like Top Glass, Cabnets, Operation Key Board, A.C. Supply PCB, D.C. Controller PCB, Lamp Regulator PCB, etc - amendment to Para 2.17 of the Foreign Trade Policy (FTP) by Notification No. 31 (RE-2005)/2004-2009 dated 19.10.2005 - applicability of the decision in the case of Atul Commodities Pvt. Ltd. C.C 2009 (2) TMI 18 - SUPREME COURT - Held that - the subject goods are not complete second hand photocopiers but they are parts of old and used photocopier machines. The decisions quoted above by the appellants are with reference to the import of second hand photocopiers and the same did not cover various parts of old and used photocopiers. When the goods in question are different than the goods under consideration by the Hon ble Supreme Court in the case of Atul Commodities Pvt. Ltd. the decisions would not be applicable to the present case - confiscation justified. Quantum of redemption fine and penalty - reliance placed on the decision in the case of Rex Printing Press Vs. Commissioner of Customs, Kolkata 2004 (12) TMI 229 - CESTAT, BANGALORE - redemption fine and penalty imposed are extremely high - Held that - redemption fine and penalty imposed by the original adjudicating authority are not proportionate to the contravention(s) committed by appellants - the redemption fine and the penalty are reduced to 10% and 5% of the assessable value of the goods respectively. Appeal disposed off - decided partly in favor of appellant.

Summary

Issues: Import of used spares of photocopiers, applicability of Foreign Trade Policy amendment, justification of penalty, confiscation, and redemption fine.

In the case concerning the import of old and used spares of photocopiers, the appellants argued that the goods were imported before the amendment to Para 2.17 of the Foreign Trade Policy (FTP) and were not registered prior to the said amendment, thus contesting the penalties imposed. The appellants cited case laws to support their contentions. The Respondent, the Commissioner of Customs, Cochin, supported the lower adjudicating authorities' findings. The Tribunal analyzed the nature of the imported goods, concluding that they were parts of old photocopiers, not complete second-hand photocopiers as in the cases cited by the appellants. Therefore, the decisions in those cases were deemed inapplicable to the present scenario.

Regarding the redemption fine and penalty, the appellants argued that the amounts imposed were excessively high. Citing precedents, the Tribunal found the redemption fine and penalty disproportionate to the contraventions committed by the appellants. Following the decisions in relevant cases, the Tribunal reduced the redemption fine to 10% and the penalty to 5% of the assessable value of the goods in all four appeals. Consequently, the appeals were disposed of in favor of the appellants with a reduction in the redemption fine and penalty, granting them any consequential relief entitled.