2020 (2) TMI 345 - AT - Customs

Quantum of redemption fine and penalty - Valuation of imported goods - enhancement of value - Confiscation of goods - HELD THAT - The learned Commissioner(Appeals) has ordered reduction of redemption fine and personal penalty on the basis of ratio laid down by the Tribunal in the case of M/S. OMEX INTERNATIONAL VERSUS COMMISSIONER OF CUSTOMS, NEW DELHI 2015 (4) TMI 112 - CESTAT NEW DELHI (LB) - The Tribunal 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 are no reasons to interfere with the findings of the learned Commissioner(Appeals) on the basis of such decision - appeal dismissed - decided against Revenue.

Summary

Issues:
Delay in filing appeals, condonation of delay, enhancement of value of imported goods, confiscation of goods, redemption fine, personal penalty, challenge to appellate authority's order, reduction of redemption fine and penalty, justification for redemption fine and penalty, appropriateness of redemption fine and penalty percentages, relevance of previous tribunal decision, final decision on appeals.

Analysis:
The judgment by the Appellate Tribunal CESTAT KOLKATA involved multiple issues, starting with the condonation of delay in filing the appeals before the Tribunal. The Miscellaneous Applications were filed for this purpose, and the delay was condoned based on the reasons mentioned in the applications. The appeals were then taken up for final hearing due to the narrow compass of the issue involved, with the consent of the Authorized Representative for the Revenue.

The core issue in the appeals revolved around the imported old and used worn clothing, where the declared value was enhanced during original assessment, leading to confiscation of the goods for violating Import Trade Control restrictions. The original adjudicating authority had imposed a redemption fine and personal penalty, which were later reduced by the First Appellate Authority. The Revenue challenged this reduction, arguing for an increase in the redemption fine and personal penalty to deter such violations in the future.

During the hearing, the Authorized Representative for the Revenue contended that a higher redemption fine and penalty were warranted due to the importer's repeated violations of ITC Regulations. However, upon review, the Tribunal found that the reduction in redemption fine and penalty by the First Appellate Authority was justified. The Tribunal referenced a previous decision regarding appropriate percentages for redemption fine and penalty in cases of import violations, ultimately upholding the impugned order and rejecting the appeals filed by the Revenue.

In conclusion, the Tribunal upheld the impugned order, citing the precedent set by the previous tribunal decision regarding redemption fine and penalty percentages in import violation cases. The appeals filed by the Revenue were rejected, and the Miscellaneous Application (Stay) was also disposed of as part of the final decision.