2001 (2) TMI 677 - AT - Customs

Summary

Issues:
Challenge to quantum of redemption fine and penalty imposed on individuals.

Redemption Fine Issue:
The appeals were filed to challenge the redemption fine and penalty imposed. The appellant did not contest the confiscation and duty demand but focused on the redemption fine. The appellant argued that the redemption fine should be reduced based on a precedent where 85% of the CIF value was considered appropriate. The Tribunal agreed, reducing the redemption fine from Rs. 14 lakhs to 85% of the CIF value, amounting to Rs. 11.50 lakhs. The Tribunal emphasized that the redemption fine is linked to the profit margin and followed the precedent set by the Larger Bench decision in Harpreet International.

Penalty Imposition on Maninder Singh:
Regarding the penalty imposed on Maninder Singh, the appellant contended that the penalty of Rs. 5 lakhs was excessive. The Commissioner observed that there was no evidence to prove Maninder Singh's awareness of the poppy seeds in the imported consignment. The Tribunal acknowledged Maninder Singh's lack of awareness but noted his actions post-discovery. Despite finding the penalty justifiable, the Tribunal reduced it to Rs. 3,00,000 considering the circumstances and lack of evidence implicating Maninder Singh in the importation of poppy seeds.

Penalty Imposition on Davinder Singh:
The appellant argued that the penalty of Rs. 50,000 on Davinder Singh was too high as he had minimal involvement in the impugned goods. The Tribunal acknowledged Davinder Singh's role in the importation process based on supplied documents. While upholding his involvement, the Tribunal reduced the penalty to Rs. 15,000, considering the circumstances. The Tribunal found no infirmity in Davinder Singh's involvement but adjusted the penalty amount in the interest of justice.

Conclusion:
The Tribunal reduced the redemption fine for poppy seeds, penalties for Maninder Singh and Davinder Singh based on the arguments presented and the lack of concrete evidence linking them directly to the importation of the goods. The judgments aimed to balance the penalties imposed with the level of involvement of each individual in the importation process, ensuring fairness and justice in the disposition of the appeals.