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Issues:
1. Misdeclaration of value of imported diesel engines. 2. Eligibility for clearance under Open General Licence. 3. Confiscation of goods under Sections 111(p) and 111(m) of the Customs Act, 1962. 4. Enhancement of assessable value and imposition of fines and penalties. 5. Reduction in redemption fine based on market conditions. Analysis: 1. The appeals before the Appellate Tribunal CEGAT, Mumbai involved the misdeclaration of the value of second-hand used diesel engines imported by the appellants. The Commissioner of Customs Mumbai found that the declared value was incorrect upon examination of the goods. 2. The Commissioner determined that the old and used diesel engines were not eligible for clearance under Open General Licence and required a specific license for clearance. Additionally, the Commissioner enhanced the assessable value of the goods in certain cases where the declared value was deemed low. 3. Subsequently, the Commissioner confiscated the goods under Sections 111(p) and 111(m) of the Customs Act, 1962, and imposed fines and penalties on the appellants based on the discrepancies in the declared values of the imported goods. 4. During the proceedings, the appellants did not contest the confiscation or the penalties imposed but sought a reduction in the redemption fine. The appellants argued that the market conditions for old and used diesel engines had led to a reduced profit margin, justifying a decrease in the redemption fine. 5. The Appellate Tribunal considered the arguments presented by both parties and reviewed a precedent order involving similar circumstances. The Tribunal noted that the facts were comparable and decided to reduce the redemption fine in line with the previous ruling. The Tribunal upheld the penalties imposed by the Commissioner but reduced the redemption fine to 100% of the assessable value in each case, providing relief to the appellants based on market conditions. In conclusion, the Appellate Tribunal modified the Commissioner's order by reducing the redemption fine in all three cases and upheld the penalties imposed. The appellants were granted relief in the form of reduced redemption fines, aligning with the precedent order and considering the market conditions for old and used diesel engines.
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