1992 (8) TMI 171 - AT - Customs

Summary

Issues:
- Confiscation of imported goods due to license mismatch
- Quantum of redemption fine imposed

Confiscation of Imported Goods Due to License Mismatch:
The appeal was against the Collector of Customs, Madras' order confiscating GP sheets imported by the appellants valued at Rs. 3,43,800 as they were deemed defective and not covered by the license produced. The appellants contended that while not contesting the appeal on merits, they focused on the quantum of the redemption fine imposed. They argued that similar goods had been imported at other ports under lenient views due to confusion regarding items covered by the license. The authorities found that the import licenses produced did not cover the imported goods, leading to unauthorized importation of 80 coils of GP sheets. The appellants admitted the licenses were invalid for the imported goods, and no plea was made regarding previous practice guiding their importation. Despite physical examination and depreciation allowance, the redemption fine was set at Rs. 3.00 lakhs. The Tribunal reduced the fine to Rs. 2,50,000, citing the goods were not covered by the licenses produced, and no mitigating circumstances warranted leniency as in other cases.

Quantum of Redemption Fine Imposed:
The appellants argued for a proportionate reduction in the redemption fine based on lenient views taken in similar cases at other ports. However, the authorities found no evidence that the goods imported in other cases were covered by the licenses produced in this consignment. The appellants failed to prove excessive redemption fine or market value considerations. Despite a 20% depreciation allowance, the redemption fine was initially set at Rs. 3.00 lakhs. The Tribunal, considering the prolonged storage period and lack of mitigating circumstances, reduced the redemption fine to Rs. 2,50,000. The decision highlighted that the goods were not covered by the licenses produced, and no grounds for further leniency were established based on previous practices or market value considerations.