2000 (4) TMI 282 - AT - Customs

Summary

Issues:
Reduction of redemption fine and setting aside personal penalty by Commissioner of Customs (Appeals) - Assessment of duty amount - Appeal before the Tribunal.

Redemption Fine and Penalty Issue:
The appeal involved a case where M/s. Divine United Organisation (DUO) received 5 used Video Cameras with accessories as a donation from a foreign country. The Additional Commissioner of Customs imposed a redemption fine of Rs. 60,000 and a penalty of Rs. 5,000 on DUO, which was reduced by the Commissioner of Customs (Appeals) to Rs. 30,000 and set aside the penalty. The Tribunal considered the argument that DUO should not be punished for goods they did not import, emphasizing their non-commercial nature and lack of mala fide intention. The Tribunal found the redemption fine excessive at Rs. 30,000 and reduced it to Rs. 5,000, directing any excess payment to be refunded to DUO.

Assessment of Duty Amount Issue:
The Additional Commissioner of Customs had assessed the value of the imported goods at Rs. 3,13,334 based on the Bill of Entry filed by DUO. Despite DUO presenting a letter from the donor indicating a lower value, the Tribunal upheld the assessment, stating that the donor's letter could not be accepted as correct at that stage. The Tribunal acknowledged the reduction of the redemption fine by the Commissioner of Customs (Appeals) as reasonable given DUO's non-commercial status and the circumstances of the donation. The Tribunal modified the Commissioner's order, reducing the redemption fine from Rs. 30,000 to Rs. 5,000 due to DUO's lack of mala fide intention and their non-commercial charitable activities promoting educational and social interests.

Conclusion:
The Tribunal modified the Commissioner of Customs (Appeals) order by reducing the redemption fine from Rs. 30,000 to Rs. 5,000, considering DUO's non-commercial nature, lack of mala fide intention, and the circumstances of the donation. Any excess amount already paid by DUO was directed to be refunded to them. The appeal was disposed of in favor of DUO based on the reduced redemption fine.