2019 (2) TMI 445 - AT - Customs

Quantum of Redemption fine and penalty - Valuation of imported goods - used computers - enhancement in assessable value - Held that - The appellants have imported used computers without license which would make them liable for confiscation as per the provisions of Section 125 of the Customs Act 1962 and the redemption fine needs to be imposed - the appellant is required to pay redemption fine on the bills of entries in these appeals to the tune of 10% of the assessable value - appeal allowed in part.

Summary

Issues:
Reduction of redemption fine and penalty imposed by lower authorities for importing used computers without a license.

Analysis:
The case involved two appeals against orders dated 15/07/2010 and 12/04/2010, concerning the reduction of redemption fine and penalty imposed for importing used computers without a license. The issue before the Bench was the discrepancy in the redemption fine and penalty imposed by the lower authorities. The appellant had imported used computers without a license, leading to an enhanced assessable value based on a Chartered Engineer's certificate. The adjudication order confirmed customs duty demands on the enhanced value and imposed fines and penalties for violating the Customs Act. The redemption fine imposed was around 15% of the assessable value, and the penalty was 7.5% of the assessable value. The appellant argued for a reduction based on precedents where the Tribunal set redemption fine at 10% and penalty at 5% of the assessable value in similar cases.

The appellant's representative cited cases such as Rex Printing Press Vs CCE Calcutta, Monisha Industries Pvt Ltd, HT & Co., Big Apple Mfg Co., and H.T. Company, where the Tribunal had reduced redemption fines and penalties to 10% and 5% of the assessable value, respectively. However, the respondent's representative argued that the imposed 15% redemption fine and 7.5% penalty were standard and acceptable, considering the appellant's history of importing used computers in violation of the Customs Act. Upon careful consideration, the Bench found the appellants liable for confiscation under Section 125 of the Customs Act for importing used computers without a license. The Bench agreed with the appellant's representative and reduced the redemption fine to 10% of the assessable value and set the penalty at 5% of the assessable value for both appeals.

In conclusion, the Bench held that the appellants must pay a redemption fine of 10% of the assessable value and a penalty of 5% of the assessable value for importing used computers without a license. The appeals were disposed of accordingly.