2000 (3) TMI 80 - AT - Customs

Summary

Issues: Validity of REP licence for import of Sodium Saccharine, Modification of fine and penalty

The judgment by the Appellate Tribunal CEGAT, Court No. III, New Delhi, involved a dispute regarding the validity of a REP licence for the import of Sodium Saccharine. The appellants imported Sodium Saccharine under a generic description in the licence, which the Customs authorities deemed invalid due to specific restrictions in the Import Policy. The Assistant Commissioner and Commissioner of Customs (Appeals) upheld the decision to confiscate the goods and impose fines and penalties. The Tribunal noted that Sodium Saccharine was a restricted item under the Import Policy and could not be imported under a generic description in the REP licence. The Tribunal distinguished previous judgments related to import against different types of licences and concluded that the REP licence in this case was not valid for Sodium Saccharine import.

Regarding the modification of fine and penalty, the Tribunal found the Deputy Collector's imposition of fines and penalties without considering the margin of profit to be inappropriate. Therefore, the Tribunal reduced the fine to 100% of the consignment value and the penalty to a fixed amount in each case. The judgment clarified the issues, analyzed relevant legal provisions, and provided a detailed explanation for the decision. The appeal was disposed of with the modified fine and penalty amounts, emphasizing the importance of considering all aspects of the case in determining financial penalties.