2017 (3) TMI 490 - AT - Customs

Valid licence for import - import of rough marble blocks - appellant were not in possession of the prescribed licence at the time of placing the order or at the time of import of the goods - Confiscation - redemption fine - penalty - Held that - The goods were held to be offending for not being in possession of valid licence for import. The imported goods were not marble but other calcareous stones which the Geological Survey of India reported to be a variety of limestone without metamorphic recrystalisation and such goods being restricted could be imported only against licence - appeal rejected - decided against appellant.

Summary

Issues:
1. Determination of redemption fine and penalty under section 112 of Customs Act, 1962.
2. Compliance with previous Tribunal order.
3. Import of goods without a valid license.
4. Nature of imported goods and restrictions.
5. Calculation of fine and penalty based on profit margin.

Analysis:

1. The judgment deals with the determination of redemption fine and penalty under section 112 of the Customs Act, 1962. The impugned order by the Commissioner of Customs had set the redemption fine at ?12,50,000 and penalty at ?1,90,000 to be recovered in terms of a bond executed at the time of provisional release of goods and from the deposit and bank guarantee furnished by the importer.

2. The case involved a second journey of dispute to the Tribunal, with the previous order directing the original authority to follow principles laid down in a specific case law. The appellant had imported 'rough marble blocks' without a valid license, leading to the confiscation of goods and imposition of redemption fine and penalty.

3. The appellant argued that the adjudicating authority should have complied with the previous Tribunal order. However, despite notice, no one appeared for the appellant during the proceedings. The impugned order detailed the nature of the imported goods as 'other calcareous stones,' which required a license for importation.

4. The Tribunal considered the nature of the imported goods, which were classified as 'other calcareous stones' by the Geological Survey of India. These goods were restricted and could only be imported with a valid license. The Tribunal also addressed the calculation of the fine and penalty based on a profit margin of 50% of the CIF value, ultimately upholding the impugned order's determination of fine and penalty.

5. The judgment concluded by rejecting the appeal and disposing of the cross-objection. The Tribunal found no reason to interfere with the impugned order's determination of the fine and penalty, considering the detailed findings provided. The decision was pronounced in court on 14/02/2017.