2019 (5) TMI 1359 - AT - Customs

Valuation of imported goods - enhancement of value based on NIDB data - Confiscation - redemption fine - penalty - HELD THAT - The enhancement of value has been ordered by the First Appellate Authority on the basis of concurrence given by the importer for such enhancement. There is no challenge to the order of confiscation, but Revenue is challenging the quantum of redemption fine and penalty, which stand reduced by the ld.Commissioner (Appeals). The ld.Commissioner (Appeals) has ordered reduction of redemption fine and personal penalty on the basis of ratio laid down by the Three Member Bench of CESTAT, Delhi in the case of M/S. OMEX INTERNATIONAL VERSUS COMMISSIONER OF CUSTOMS, NEW DELHI 2015 (4) TMI 112 - CESTAT NEW DELHI (LB) - The Three Member Bench has taken the view that redemption fine of 10% and penalty of 5% of the value of the imported goods, would be appropriate in case of import violating Exim Policy Provisions - there is no reason to interfere with the findings of the ld.Commissioner (Appeals) on the basis of such decision. Appeal dismissed - decided against Revenue.

Summary

Issues: Condonation of delay in filing appeals, Confiscation of imported goods, Enhancement of value, Reduction of redemption fine and personal penalty, Challenge by Revenue, Appropriate redemption fine and penalty, Upholding impugned order, Rejection of Revenue's appeals.

The judgment addresses the issue of condonation of delay in filing appeals by the Revenue before the Tribunal. The Miscellaneous Applications filed seeking condonation of a 162-day delay were allowed by the Tribunal after considering the reasons provided in the application. Despite the absence of the Respondent, the appeals were taken up for final hearing with the consent of the Departmental Representative for the Revenue. The appeals were against a common Order-in-Appeal dated 14.05.2018 regarding the confiscation of imported old and used worn clothing. The original assessment had enhanced the declared value of the imported goods, leading to confiscation under Section 111(d) of the Customs Act, 1962, along with imposition of redemption fine and personal penalty under Sections 125 and 112(a) of the Act, respectively.

The judgment delves into the challenge by the Revenue against the order of the First Appellate Authority, which upheld the confiscation and value enhancement but reduced the redemption fine and penalty. The Revenue argued for an increase in the redemption fine and personal penalty, emphasizing the need for deterrence against repeated violations of Import Trade Control regulations by the importer. The Tribunal, after hearing the Departmental Representative and reviewing the record, noted that the value enhancement was based on the importer's concurrence and that the challenge was primarily regarding the reduced redemption fine and penalty.

Furthermore, the judgment references a decision by a Three Member Bench of CESTAT, Delhi, in the case of Omex International Vs. Commissioner of Customs, New Delhi, which established that a redemption fine of 10% and a penalty of 5% of the value of imported goods would be appropriate for violations of Exim Policy Provisions. The Tribunal found no reason to interfere with the findings of the First Appellate Authority based on this precedent. Consequently, the impugned order was upheld, and the appeals filed by the Revenue were rejected. The judgment concludes with the pronouncement of the decision in the open court, maintaining the rejection of the Revenue's appeals.