1999 (4) TMI 308 - AT - Customs

Summary

Issues:
Quantum of redemption fine on import of Poppy seeds of Pakistan origin.

Analysis:
The judgment involves 8 appeals by 2 appellants with identical issues regarding the redemption fine on the import of Poppy seeds of Pakistan origin. The Orders-in-Original imposed a redemption fine equal to 100% of the CIF value. The Commissioner of Customs and Central Excise upheld these orders, distinguishing a previous Tribunal order that confirmed a redemption fine of 85% of CIF value. The Commissioner justified the 100% redemption fine based on the margin of profit and the absence of heavy demurrage payments.

The advocate for the appellants argued that a previous Tribunal order for similar goods had set the redemption fine at 85% of the CIF value, citing established practice and legal precedents. The advocate highlighted the lack of detailed grounds in the Orders-in-Original or the Order-in-Appeal to justify the imposition of a 100% redemption fine.

The learned SDR contended that due to the fluctuating prices of Poppy seeds in the market, the original authorities were justified in imposing a 100% redemption fine to account for potential price variations.

Upon review, the judge found that the Orders-in-Original did not provide any rationale for calculating the redemption fine at 100% of CIF value. The judge emphasized that the discretion to determine the redemption fine must be based on logical findings supported by evidence. As the Orders-in-Original lacked such evidence and did not justify the 100% redemption fine, the judge ruled in favor of the appellants. Citing a previous Tribunal order and considering the period of import, the judge modified the Order-in-Appeal to reduce the redemption fine from 100% to 85% of the CIF value, granting the appeals with consequential relief as per law.