9911796707
|
Home
Issues:
Imposition of redemption fine and penalty on importer for failure to produce import license at the time of clearance. Analysis: The appeal was filed against the imposition of a redemption fine of Rs. 14 lakhs and a penalty of Rs. 7 lakhs on the importer. The case revolved around the importation of marble blocks, where the appellants prepared in-bond Bills of Entry for warehousing the goods upon arrival at the port. However, the customs authorities did not allow warehousing as the import license was not produced at the time of presenting the Bills of Entry, leading to confiscation of the goods and imposition of fines. The Tribunal remanded the case back to the authorities for reconsideration. The Commissioner suggested presenting the in-bond Bills of Entry along with the goods for acceptance by customs. The appeal challenged the requirement and the fines imposed. During the arguments, the consultant for the appellant referred to the Exim policy, specifically para 4.15, which allowed for warehousing of marble blocks upon importation at the Indian port by executing warehousing Bills of Entry. It was argued that the mistake lay with the authorities for not permitting warehousing based on the in-bond Bills of Entry presented. Due to the risk of heavy demurrage, the goods were cleared with the payment of duty, redemption fine, and penalty. The consultant contended that the fines imposed were disproportionately high and should be set aside. On the other hand, the JDR representing the respondent emphasized that importing marble blocks required a license, which was not produced during clearance, justifying the confiscation and penalties. The high value and profit margin of Italian marble blocks were highlighted to support the imposition of a 100% redemption fine and the penalty amount. The respondent prayed for upholding the impugned order and rejecting the appeal. After hearing both sides, the Tribunal noted the provision in the Exim policy for warehousing imported marble blocks and the submission of in-bond Bills of Entry by the appellants, which were not accepted by customs. The absence of the required import license during clearance was deemed justification for confiscation and penalties. However, it was clarified that the license was necessary only at the time of clearance from the warehouse, not at importation. Considering the special circumstances, the Tribunal found the redemption fine and penalty excessive. Consequently, the redemption fine was reduced to Rs. 7 lakhs, and the penalty was reduced to Rs. 3.50 lakhs, modifying the impugned order accordingly.
|
