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Issues:
1. Imposition of redemption fines and penalties for contravention of Customs Act. 2. Discrepancy in redemption fines and penalties imposed by different Customs Commissioners. 3. Justification for the imposition of fines and penalties based on the CIF value of imported goods. 4. Consideration of valuation certificates and opinions of surveyors in determining fines and penalties. 5. Applicability of penalties under section 112(a) of the Customs Act. Analysis: 1. The case involved appeals against the orders of the Commissioner of Customs, Cochin, regarding the import of cars by individuals returning to India after working abroad for over nine years. The individuals were entitled to bring imported motor vehicles of engine capacity exceeding 1600 cc if used for more than one year without restrictions. However, evidence showed that the cars were not in their use for the required period, leading to contravention of Section 111(d) of the Customs Act. Redemption fines of nearly 100% of the CIF value and penalties under section 112(a) were imposed. The appellants argued that the fines and penalties were unjustified as the cars were for personal use and in their possession. 2. Discrepancies in the imposition of fines and penalties were highlighted, with similar cases at Mumbai Custom House resulting in lower redemption fines and penalties. The appellants sought a reduction in redemption fines to 25% based on precedents set by the Commissioner of Customs in similar cases at Cochin. The Commissioner's discretion in imposing penalties was emphasized, with the imposition deemed mandatory under section 112(a) if the requirements were met. 3. The Tribunal scrutinized the Commissioner's decision, noting the lack of reasoning for the high fines imposed. Section 125 of the Customs Act was referenced, limiting fines to the market price of confiscated goods minus duty. The Commissioner's failure to justify fines close to 100% of CIF value was criticized. The appellants provided a valuation certificate from a surveyor, indicating a lower profit margin than assessed. The Tribunal concluded that the fines should be reduced based on the valuation certificate and the practice observed in previous orders. 4. Regarding penalties under section 112(a), the Tribunal disagreed with the appellants' argument for no penalty imposition. It was determined that penalties were warranted in the case, aligning with the decision on redemption fines. A penalty of Rs. 1,00,000 in each case was deemed appropriate to serve the ends of justice, as per the Commissioner's order in similar cases. 5. Ultimately, the appeals were disposed of with the redemption fines reduced to Rs. 3,00,000 in each case and penalties of Rs. 1,00,000 imposed, in line with the Commissioner's previous decisions and the valuation certificate provided by the appellants.
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