2017 (7) TMI 379 - AT - Customs

Quantum of redemption fine and penalty - Valuation - enhancement of value based on local Chartered Engineers Certificate - whether there is sufficient ground for reducing the redemption fine and penalty imposed by the Commissioner? - Held that - It is clearly shown that the appellant did not declare the correct value of the goods and the goods imported are also restricted items. In such circumstances, taking into consideration of the facts, the redemption fine and penalty imposed by the Commissioner is reasonable and does not warrant any interference - appeal dismissed - decided against appellant.

Summary

Issues:
Challenge on redemption fine and penalty imposed by the Commissioner.

Analysis:
The appellant imported various used machines and declared their value based on a Chartered Engineers Certificate. However, the department rejected this value and conducted an inspection by a local Chartered Engineer, resulting in an enhanced value. The goods were considered restricted items, leading to confiscation and imposition of a redemption fine and penalty. The appellant challenged the redemption fine and penalty, not contesting the value enhancement. The appellant argued that the redemption fine was unjustified as the margin of profit was not determined through market enquiries. The Commissioner upheld the redemption fine and penalty, stating that the appellant undervalued the goods and imported restricted items. The Tribunal found the redemption fine and penalty reasonable considering the circumstances and dismissed the appeal for lacking merit.