2000 (5) TMI 508 - AT - Customs

Summary

Issues:
1. Quantum of Redemption Fine upheld for the import of Poppy Seeds from Pakistan.
2. Reduction of Redemption Fine for similarly imported poppy seeds from Pakistan due to excessive RF.

Issue 1: Quantum of Redemption Fine upheld for the import of Poppy Seeds from Pakistan:
The appeal challenged the high quantum of Redemption Fine (RF) upheld by the Commissioner (Appeals) for the import of Poppy Seeds from Pakistan. The appellant argued that the RF was excessively high at approximately 135% and requested a reduction based on previous Tribunal orders. The Tribunal noted that for imports of poppy seeds from Pakistan in 1996, previous decisions had reduced the RF from 100% to 85% of the CIF value. Considering the need for uniformity, the Tribunal reduced the RF to 85% of the CIF value, modifying the order and allowing the appeal with consequential relief.

Issue 2: Reduction of Redemption Fine for similarly imported poppy seeds from Pakistan due to excessive RF:
In another case involving similarly imported poppy seeds from Pakistan, the RF was also set at 135% of the CIF value. The appellant reiterated the arguments made in the previous appeal, seeking a reduction in RF based on the Tribunal's past decisions. The Departmental Representative (DR) contended that excess undeclared goods were found, leading to confiscation for misdeclaration of quantity, justifying the RF at 135%. The Tribunal clarified that the decision on confiscation of goods is distinct from determining the RF, which is based on the estimated market price and importer's profit margin. Emphasizing that RF is a fine in lieu of confiscation and not a penalty, the Tribunal reduced the RF to 85% of the CIF value, aligning with the principles applied in previous Tribunal decisions. The order was modified accordingly, allowing the appeal with consequential relief as per law.

This comprehensive analysis of the legal judgment highlights the issues raised, arguments presented by the parties, Tribunal's reasoning, and the ultimate decision rendered in each case concerning the Redemption Fine for the import of poppy seeds from Pakistan.