2021 (9) TMI 1251 - AT - Customs

Absolute Confiscation of imported goods - import of used Digital Multifunction Printing and Copying Machines (MFDs) - restricted goods or not - hazardous waste or not - seeking benefit of reduced fine and penalty - HELD THAT - The original adjudicating authority in the remand proceedings has totally ignored the direction of Tribunal given in its order dt. 20/12/2019. Learned Commissioner(Appeals) has also ignored the said order - in the identical circumstances, Tribunal in the case of ACCORD DIGITECH VERSUS C. C-BANGALORE 2020 (12) TMI 647 - CESTAT BANGALORE has granted the benefit of reduced redemption fine and penalty. Respectfully following the decision of the Tribunal in the case of Accord Digitech, the appeals are allowed partially by reducing the redemption fine to 10% of the enhanced value and penalty to 5% of the enhanced value - appeal allowed in part.

Summary

Issues:
1. Confiscation of imported goods under Customs Act, 1962.
2. Determination of redemption fine and penalty.
3. Compliance with tribunal directions.
4. Discrepancy in redemption fine and penalty imposed.
5. Judicial interpretation of relevant laws and regulations.

Confiscation of Imported Goods under Customs Act, 1962:
The case involved the import of used Digital Multifunction Printing and Copying Machines (MFDs) by the appellants, which were seized on grounds of being restricted for import and hazardous waste. The original adjudicating authority had ordered absolute confiscation of the goods, a decision upheld by the Commissioner(Appeals). However, the Tribunal, in an earlier order, remanded the matter for redetermination of redemption fine and penalty. The Tribunal emphasized that goods imported without proper authorization for 'old and used' goods must be neutralized in terms of redemption fine based on market prices. The Tribunal directed the adjudicating authority to complete re-adjudication within a specified timeframe.

Determination of Redemption Fine and Penalty:
The original adjudicating authority, instead of following the Tribunal's directions, determined the redemption fine based on the re-determined assessable value of the goods. The authority imposed a redemption fine of a specific amount and penalty under Section 112(a) of the Customs Act, 1962. Appeals against this order were dismissed, leading to the matter being brought before the Tribunal once again. The appellant argued that similar cases had seen reduced redemption fines and penalties, citing a specific Tribunal order where goods were allowed for clearance on payment of redemption fine at 10% and penalty at 5% of the reassessed value.

Compliance with Tribunal Directions:
The Tribunal noted that the original adjudicating authority and the Commissioner(Appeals) had ignored the directions given in the earlier order dated 20/12/2019. In a similar case involving Accord Digitech, the Tribunal had granted reduced redemption fine and penalty, which was accepted by the Revenue. Following the precedent set in the Accord Digitech case, the Tribunal partially allowed the appeals by reducing the redemption fine to 10% of the enhanced value and penalty to 5% of the enhanced value.

Discrepancy in Redemption Fine and Penalty Imposed:
The appellant highlighted that the original adjudicating authority had disregarded Tribunal directions, resulting in higher redemption fines and penalties compared to similar cases. By referencing the case of Accord Digitech, where reduced redemption fines and penalties were granted, the appellant sought identical relief. The Tribunal, considering the consistent approach in similar cases, reduced the redemption fine and penalty in line with the Accord Digitech decision.

Judicial Interpretation of Relevant Laws and Regulations:
The Tribunal's decision in this case reflects a judicial interpretation of the Customs Act, 1962, emphasizing the need to adhere to authorization requirements for importing restricted goods. The Tribunal's approach in determining redemption fines and penalties underscores the importance of neutralizing economic advantages gained from unauthorized imports. By following established precedents and principles, the Tribunal ensured consistency in applying redemption fines and penalties in similar cases.

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