2017 (3) TMI 163 - AT - Customs

Natural justice - Imposition of redemption fine and penalty - import of second hand photo copiers - restricted item - appellant claim that they were not given a chance to contest the market price - Held that - the appellant has not challenged the enhanced valuation before this Tribunal. The value thus arrived on the basis of the Chartered Engineer certificate has attained finality. The contention of the appellant that he was not given a chance to challenge the market enquiry done by Department does not appear to be attractive - no merits in the contention of the appellant that there is violation of natural justice as he was not given a chance to contest the market price while conducting market enquiry - appeal dismissed - decided against appellant.

Summary

Issues:
- Appeal against redemption fine and penalty imposed for importing old and used photo copier machine without proper license and in violation of Foreign Trade Policy.

Analysis:
The appellant imported old and used photo copier machines without the required license, leading to the imposition of a redemption fine and penalty. The appellant declared the value of the goods at a lower amount, but after examination, the valuation was revised based on a Chartered Engineer certificate. The authorities imposed a redemption fine of &8377; 5,44,000/- and a penalty of &8377; 1 lakh. The appeal challenges only the redemption fine and penalty. The appellant's counsel sought adjournment multiple times, citing illness, but the Tribunal refused further adjournment due to the appeal's age since 2009 and lack of written submissions. The Department argued that the imposed redemption fine and penalty were reasonable, considering profit margins and established formulas from previous decisions.

Regarding the appellant's arguments, it was contended that the loaded value was accepted due to urgency, and details of market enquiry were not provided. The appellant claimed that no opportunity was given to challenge the market enquiry results, alleging a violation of natural justice. The goods imported were used photo copiers, subject to restrictions under the Foreign Trade Policy. The valuation based on the Chartered Engineer certificate was not challenged before the Tribunal, making it final. The appellant's request to contest the market price/margin of profit was rejected as the value determination had already been settled. The Tribunal found no merit in the appellant's claim of a natural justice violation and dismissed the appeal, upholding the redemption fine and penalty. The decision was based on the finalized valuation and lack of grounds for interference.

In conclusion, the Tribunal upheld the redemption fine and penalty imposed on the appellant for importing old and used photo copier machines without the necessary license, in violation of the Foreign Trade Policy. The appeal was dismissed due to the finalized valuation based on the Chartered Engineer certificate and the lack of grounds for challenging the market enquiry results. The Tribunal found no violation of natural justice and upheld the impugned order, emphasizing the importance of compliance with import regulations and valuation procedures.