2023 (7) TMI 721 - AT - Customs

Import of rough marble slabs without Special Import License - matter was remanded to the original authority to verify the factual position of margin of profit and to decide upon quantum of redemption fine and penalty, which were not considered - HELD THAT - The details of calculation were provided to the original authority. However, the original authority has not taken into consideration the same - it is found that appellant had made written submissions before the original authority. As stated in the impugned order, the appellant had submitted before the original authority that fine cannot be more than Rs. 1,91,000/- and penalty may be restricted to 5% of the assessable value. Taking the facts and circumstances into consideration, the impugned order modified to the extent that the penalty reduced from Rs. 3,10,000/- to Rs. 48,000/- under Section 112(a) of the Customs Act, 1962 - redemption fine of Rs. 1,91,000/- upheld - it is also noted that appellant has already paid redemption fine and penalty at the time of clearance of the goods. Appeal allowed in part.

Summary

Issues:
The case involves the valuation of imported rough marble slabs, imposition of redemption fine and penalty under Section 112(a) of the Customs Act, 1962, and the failure of the original authority to consider the appellant's submissions regarding profit margin.

Valuation of Imported Marble Slabs:
The appellant imported rough marble slabs with a declared value of US $310 (CIF) per metric ton, below the required US $450 for import without a Special Import License. The original authority enhanced the value to US $450 per metric ton for assessment, which the appellant agreed to. The goods were confiscated, and a redemption fine of Rs. 1,91,000/- was imposed along with a penalty of Rs. 48,000/-. The Tribunal remanded the matter multiple times for fresh adjudication to determine the profit margin accurately.

Failure to Consider Profit Margin:
The appellant argued that despite showing a loss of Rs. 73,298/- in the calculation sheet submitted to the original authority, the redemption fine and penalty remained unchanged. The appellant contended that the original authority did not comply with the Tribunal's direction to verify the profit margin, rendering the order invalid.

Tribunal's Decision:
After reviewing the case records and submissions, the Tribunal found that the original authority did not consider the appellant's detailed calculations and written submissions. The Tribunal acknowledged the appellant's argument that the penalty should be restricted to 5% of the assessable value and reduced the penalty from Rs. 3,10,000/- to Rs. 48,000/- under Section 112(a) of the Customs Act, 1962. The redemption fine of Rs. 1,91,000/- remained unchanged as it had already been paid by the appellant during goods clearance.

Conclusion:
The Tribunal modified the impugned Order-in-Original by reducing the penalty while maintaining the redemption fine, partially allowing the appeal. The decision was pronounced in open court on 11.05.2023 by Hon'ble Mr. Anil G. Shakkarwar, Member (Technical) of the Appellate Tribunal CESTAT Mumbai.