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2008 (2) TMI 160 - AT - CustomsFixation of the quantum of redemption fine in respect of confiscated goods Sandalwood oil - it is clear that fine in lieu of confiscation cannot exceed the market price - goods were seized in September, 2003, assessee has stated that she would not be able to get Rs. 7-8 lakhs and further the value of the goods had depreciated - no finding as to why the market value of goods as claimed by appellant is incorrect redemption fine reduced to 50,000 instead of 5 lac
Issues:
Redemption fine quantification in a customs case involving Sandalwood oil. Analysis: In this case, the appellant filed an appeal against the de novo order of the Commissioner, which had directed the quantification of a redemption fine for Sandalwood oil that was previously confiscated. The main contention was the excessive amount of the redemption fine set at Rs. 5 lakhs by the adjudicating authority. The appellant argued that the value of the goods had depreciated since they were seized in 2003 and should be valued at Rs. 7 lakhs to Rs. 8 lakhs. The JDR, on the other hand, justified the Rs. 5 lakhs redemption fine based on the initial value of the consignment at Rs. 25.0 lakhs and alleged mis-declaration. The appellant opposed remanding the matter back to the lower authority, despite the JDR pointing out discrepancies in the order. The Tribunal considered the submissions and records, noting that in the previous round of litigation, it was established that there was misdeclaration of the consignment's value. The matter was remanded to the adjudicating authority solely for fixing the quantum of the redemption fine. The adjudicating authority correctly highlighted the limited question for remand, emphasizing that the fine in lieu of confiscation cannot exceed the market price of the goods. The Commissioner accepted the appellant's claim that the consignment's market value was Rs. 7 lakhs to Rs. 8 lakhs, leading to the conclusion that the Rs. 5 lakhs redemption fine was excessive. Ultimately, considering the depreciation in the value of the seized goods since 2003 and to ensure justice, the Tribunal reduced the redemption fine from Rs. 5 lakhs to Rs. 50,000. The appeal was disposed of with this modification, providing relief to the appellant in the quantification of the redemption fine for the confiscated Sandalwood oil.
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