2017 (11) TMI 1528 - AT - Customs

Quantum of redemption fine and penalty - Baggage Rules - valuation of electronic goods - Held that - the goods imported are mainly electronic goods. These goods do get reduced in their value as they became outdated over a period of time, so also the appellant has paid Customs duty to the tune of ₹ 6,87,165/- on the goods - the Redemption Fine and penalty imposed is excess and, therefore, which we reduce the Redemption Fine to ₹ 2,50,000/- and penalty to ₹ 75,000/-, would meet the ends of justice - appeal allowed in part.

Summary

Issues: Customs duty evasion, redemption fine, penalty imposition, reduction of redemption fine and penalty.

Customs Duty Evasion:
The appellant arrived at Coimbatore Airport from Singapore and was found with undeclared electronic goods in his baggage, indicating an intent to evade payment of Customs duty. The goods included Computer RAM of various capacities. The appellant was arrested under section 104 of the Customs Act, and the goods were seized by the officers.

Redemption Fine and Penalty Imposition:
The adjudicating authority imposed a redemption fine of ?12,00,000 and a penalty of ?2,00,000 through an Order-in-Original dated 28.08.2008. The appellant appealed to the Tribunal, which remanded the matter for de novo adjudication. In the subsequent proceedings, the authority ordered the confiscation of goods, imposed a redemption fine of ?5,00,000, and a penalty of ?2,00,000. The appellant contested the quantum of the redemption fine and penalty.

Reduction of Redemption Fine and Penalty:
The appellant argued that the market value of electronic goods decreases over time due to becoming outdated, justifying a lower redemption fine. The appellant claimed no intention of smuggling the goods into India. The Tribunal considered the reduction in the value of electronic goods and the Customs duty paid by the appellant amounting to ?6,87,165. Consequently, the Tribunal reduced the redemption fine to ?2,50,000 and the penalty to ?75,000, deeming it more appropriate and just.

In conclusion, the Tribunal modified the impugned order by reducing the redemption fine and penalty to ?2,50,000 and ?75,000, respectively, allowing the appeal in favor of the appellant with consequential relief.