1998 (3) TMI 456 - AT - Customs

Summary

Issues:
1. Interpretation of ITC (HS) Classification for import of diesel engines.
2. Applicability of specific license requirement under Exim Policy 1992-1997.
3. Quantum of Redemption Fine and Penalty for unauthorized import of goods.

Analysis:
1. The appeal challenged the confiscation of a used Diesel Engine based on the grounds of it being classified as consumer goods requiring a specific license for import. The appellants argued that the ITC (HS) Classification allowed for the import of diesel engines without a license, and this classification was in force before the import date. The Tribunal noted that the Commissioner (Appeals) correctly considered the applicability of the ITC (HS) Classification and concluded that it did not apply to used diesel engines. The Tribunal upheld this finding, stating that the appellants cannot claim a new ground was introduced as they themselves raised the issue, and the Policy did not cover used engines.

2. The Tribunal also addressed the argument regarding the Redemption Fine imposed, citing precedents where a fine of 100% of the value was deemed appropriate for used diesel engines. Relying on these precedents, the Tribunal reduced the Redemption Fine and Penalty to Rs. 40,000 and Rs. 4,000, respectively, based on the value of the goods. The Tribunal found the modifications justified based on the established practice and case law regarding Redemption Fine for such imports.

3. The Tribunal emphasized that the Commissioner (Appeals) did not exceed the scope of the appeal by considering the ITC (HS) Classification and determining its inapplicability to used diesel engines. The Tribunal upheld the decision regarding the unauthorized import of goods while modifying the Redemption Fine and Penalty based on established precedents and the value of the goods. The appeal partly succeeded in obtaining relief in the form of reduced fines, maintaining the conclusion of unauthorized import.