2000 (8) TMI 506 - AT - Customs

Summary

Issues:
Import of garlic without a license, imposition of redemption fine and penalty, reduction of redemption fine, principles of natural justice violation.

Analysis:
The appeal pertains to an order by the Commissioner of Customs, Chennai, imposing a redemption fine and penalty on importers for importing garlic without a license. The appellants seek a reduction in the redemption fine based on previous tribunal orders. The advocate argues for a reduction to 22% of the CIF value, citing precedents where fines were reduced significantly. The Departmental Representative (DR) opposes any reduction, stating that the imposed fines are justified based on the profit margin calculation.

The advocate challenges the profit margin calculation, alleging lack of opportunity to rebut the figures. The Tribunal notes that previous orders from Mumbai cannot be directly applied to imports at Chennai due to differences in market values. It highlights a lack of evidence on how the profit margin was determined and the absence of natural justice principles in the case. The Tribunal concludes that the appellants should be given a chance to contest the profit margin calculation and sets aside the order for a reevaluation following natural justice principles.

The appeal is allowed for a remand for de novo adjudication, directing the department to apply the material for profit margin determination to the appellants, allowing them to present their case. The redemption fine and penalties are to be determined in accordance with the law within one month from the receipt of the order.