2017 (1) TMI 465 - AT - Customs

Confiscation of imported goods - Imposition of redemption fine and penalty - Valuation of goods - Held that - there is no merit in the appeal as adjudicating authority has correctly held that the the assessable value is less than the value limit prescribed under the Policy, Policy provisions have been violated in this case. To that extent, we uphold the impugned order. the adjudicating authority has imposed redemption fine of ₹ 11 lakhs. The norms, as can be seen from various decisions of the Tribunal on the same issue, is that the redemption fine is imposed @ 20% of the enhanced value which in this case approx ₹ 4 lakh, which we find will meet the ends of justice. Accordingly, the redemption fine imposed on the appellant is reduced to ₹ 4 lakh. As regards the penalty imposed, we find that the penalty imposed on the appellant is not excessive in relation to the value of landed cost of the marble. Appeal disposed off - decided partly in favor of appellant.

Summary

Issues: Redemption fine imposed in lieu of confiscation and penalties.

Analysis:
The appeal was directed against an Order-in-Original passed by the Commissioner of Customs regarding the redemption fine and penalties imposed. The appellant had imported polished marble blocks and declared a value, which was provisionally assessed and later finalized by enhancing the value. The Customs authorities held that the imports were undervalued and imposed a fine of &8377; 11 lakhs in lieu of confiscation and a penalty of &8377; 50,000 under the Customs Act. The adjudicating authority found mis-declaration and upheld the enhancement of value, stating that the goods were liable for confiscation under the Customs Act.

Upon considering the submissions, the Tribunal upheld the adjudicating authority's decision on the assessable value being less than the prescribed limit under the Policy, thus violating policy provisions. However, the Tribunal found the redemption fine of &8377; 11 lakhs to be excessive compared to the norms observed in similar cases. The Tribunal noted that the usual redemption fine is imposed at 20% of the enhanced value, which in this case would be around &8377; 4 lakhs. Therefore, the redemption fine was reduced to &8377; 4 lakhs to meet the ends of justice. The penalty imposed was deemed not excessive in relation to the value of the marble.

Consequently, the appeal was disposed of by reducing the redemption fine to &8377; 4 lakhs, while upholding the penalty imposed on the appellant.