2013 (9) TMI 27 - AT - Customs

Import of Second hand goods without licence - Confiscation of goods Redemption fine Commissioner (Appeals) reduced the redemption fine/penalty imposed by the original authority - import of old and used analogous and digital copiers of Canon brand, old and used computer systems, monitors, old and used MFP, copier machines, old and used monitors and parts like RAM and CPU Held that - It is not the case of the department that the Commissioner has fixed the quantum of redemption fine and penalty arbitrarily. In all these cases, no statement has been taken from the representatives of the respondents and no show-cause notice has been issued to any of the respondents on the ground that they waived written show-cause notices. Therefore, the basis on which the department is alleging that the redemption fine and penalty imposed by the Commissioner is not adequate is not forthcoming. As already mentioned these are not cases involving any other violation except violation relating to import without requisite licences. Decided against revenue.

Summary

Issues:
1. Appeal against orders of the Commissioner of Customs regarding redemption fines and penalties.
2. Reduction of redemption fine/penalty by the Commissioner (Appeals).
3. Similar facts and legal points in all appeals.
4. Challenge to discretion exercised by the Commissioner/Commissioner (Appeals) in imposing/reducing fines and penalties.
5. Examination of imported second-hand goods by Chartered Engineer.
6. Discretion of adjudicating authority in imposing redemption fine.
7. Quantum of redemption fine depending on facts and circumstances of each case.

Detailed Analysis:
The judgment involves six appeals filed by the Department against orders of the Commissioner of Customs related to imported second-hand goods confiscated but allowed redemption upon payment of fines and penalties. The Department contested the quantum of redemption fines and penalties, seeking a fresh consideration by the Commissioner. One appeal specifically addressed the reduction of redemption fine/penalty by the Commissioner (Appeals). The appeals shared similar facts and legal points, hence were dealt with collectively.

The Department argued that the imported goods required licenses as per the Exim Policy, and the respondents lacked such licenses. The Chartered Engineer's examination determined the nature, residual life, and value of the goods, which the respondents accepted for duty payment. The Department emphasized the need for fines and penalties to deter repeated violations, citing relevant High Court and Supreme Court decisions and Board circulars.

The judgment highlighted the discretion of the adjudicating authority in imposing redemption fines, as per legal precedents. The Supreme Court emphasized that the quantum of redemption fine should be case-specific, considering the facts and circumstances. The judgment noted that the Department did not provide evidence or statements from respondents regarding the import circumstances, leading to a lack of justification for challenging the fines and penalties imposed.

The judgment concluded that the Department's appeals were unfounded as the fines and penalties were not deemed arbitrary. The Commissioner (Appeals) had reduced fines based on discretion, without market inquiry or reliable evidence. The imposed fines were linked to re-determined values based on the Chartered Engineer's estimation, not market data. Consequently, all appeals by the Department were rejected, affirming the decisions on redemption fines and penalties.