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Imposition of redemption fine on import of brass ingots declared as scrap. Analysis: The judgment by the Appellate Tribunal CEGAT, New Delhi dealt with an appeal regarding the imposition of a redemption fine of Rs. 50,000 on M/s. Moonlight Overseas Pvt. Ltd. for the import of brass ingots declared as scrap. The Collector of Customs, Kandla, imposed the redemption fine without any penalty. The main argument presented was that the quantity of brass ingots found in the consignment was only 5% of the total, and there was no intention of malpractice. Reference was made to Section 125 of the Customs Act, 1962, which allows for the option to pay a fine in lieu of confiscation. The tribunal considered the market price of the goods confiscated, less the duty chargeable, in determining the redemption fine. The tribunal noted that the prohibition on import, subject to conditions, would be considered as a prohibition if the conditions were not met, thus justifying the imposition of the redemption fine. Additionally, it was clarified that the notice issued under the signature of the Superintendent of Central Excise, instead of the Assistant Collector, was deemed valid as it was under the authority of the Assistant Collector. The tribunal emphasized that the redemption fine should not exceed the market price of the goods confiscated, including the duty and profit margin. In assessing the case, the tribunal found that the redemption fine of Rs. 50,000 was appropriate based on the CIF value of the brass ingots and the duty involved. Despite the importer's claim of no intentional wrongdoing, the tribunal upheld the decision of not imposing a personal penalty. Considering all aspects of the case, the tribunal concluded that there was no merit in the appeal and rejected it accordingly.
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