2017 (8) TMI 495 - AT - Customs

Quantum of Redemption fine - penalty - import of restricted item - photocopier machine - Held that - the imposition of fine and penalty in the present case is not exorbitant because the imported photocopier during the relevant time was not permissible to import under Foreign Trade Policy without a license as it was restricted item, therefore the appellant has violated the Foreign Trade Policy and therefore, both the authorities have imposed fine and penalty which in my opinion is not exorbitant - appeal dismissed - decided against appellant.

Summary

Issues:
1. Imposition of redemption fine and penalty on imported goods without proper license under Foreign Trade Policy.

Analysis:
The appeal was directed against an order where the Commissioner (A) rejected the appeals of the appellant related to the imposition of redemption fine and penalty on imported goods. The appellant had imported used analogue copier machines without the required license, leading to the assessment of goods at a higher value than declared. The Additional Commissioner confiscated the goods and imposed a redemption fine of &8377; 4 lakhs, duty payment, and a penalty of &8377; 2 lakhs. The appellant paid the imposed amounts and challenged the fine and penalty before the Commissioner (A).

During the hearing, the appellant's counsel argued that the redemption fine and penalty were excessive, considering the circumstances. It was highlighted that there was no suppression of facts, the goods were not prohibited but restricted, and the appellant had a narrow profit margin. On the other hand, the AR defended the order, emphasizing that the goods required a license for importation, which the appellant did not possess. The absence of the license rendered the goods liable for confiscation.

Upon reviewing the submissions and the records, the Tribunal upheld the imposition of fine and penalty. The Tribunal noted that the imported goods were restricted under the Foreign Trade Policy and required a license for importation, which the appellant failed to obtain. Consequently, the appellant violated the policy, leading to the imposition of fine and penalty. The Tribunal deemed the imposed amounts as justified and not excessive, ultimately dismissing the appeal.

In conclusion, the Tribunal upheld the order, emphasizing the violation of the Foreign Trade Policy due to the importation of restricted goods without the necessary license. The decision highlighted the importance of compliance with licensing requirements for the importation of goods, ultimately leading to the dismissal of the appellant's appeal against the redemption fine and penalty.