2003 (6) TMI 131 - AT - Customs

Summary

Issues:
- Discriminatory imposition of redemption fine and penalty compared to similar cases.
- Payment of demurrage and detention charges affecting profit margin.
- Request for reduction of redemption fine and penalty.

Analysis:
1. Discriminatory Imposition of Redemption Fine and Penalty:
The appeal challenged the Order-in-Appeal reducing the fine to Rs. 2,50,000 and penalty to Rs. 50,000. The appellant argued discrimination, citing cases where redemption fines were reduced to 10% of CIF value and penalties to 10% of redemption fines for similar goods. The appellant faced heavy charges and delays, impacting their profit margin. The Tribunal acknowledged consistent decisions by other Commissioners imposing 10% redemption fines and penalties for comparable cases. Consequently, the Tribunal reduced the redemption fine to Rs. 70,000 and penalty to Rs. 7,000, citing the need for fairness and consistency.

2. Payment of Demurrage and Detention Charges:
The appellant highlighted the substantial demurrage and detention charges of Rs. 3 lakhs incurred due to delays in clearing goods. These charges significantly eroded the profit margin, making it challenging for the appellant to operate profitably. The Tribunal considered this aspect along with the discriminatory imposition of fines and penalties, leading to the decision to reduce the redemption fine and penalty to alleviate the financial burden on the appellant.

3. Request for Reduction of Redemption Fine and Penalty:
The appellant's counsel argued for a reduction in the redemption fine and penalty, emphasizing the lack of any profit margin left in the consignment due to the heavy charges and penalties imposed. The counsel cited precedents where fines were reduced significantly compared to the appellant's case. The Tribunal, after considering the arguments and the consistent approach of other Commissioners in similar cases, decided to reduce the redemption fine and penalty to provide relief to the appellant and ensure fairness in the imposition of financial penalties.

In conclusion, the Tribunal addressed the issues of discriminatory imposition of fines, impact of demurrage and detention charges on profit margins, and the request for reduction of fines and penalties. By reducing the redemption fine and penalty, the Tribunal aimed to rectify the disparity in treatment, alleviate financial burdens on the appellant, and ensure consistency and fairness in such matters.