2016 (12) TMI 1154 - AT - Customs

Irregular importation of marble slabs - mis-declaration of value - redemption fine - penalty - Held that - The adjudicating authority has redetermined the value and importer appellant has discharged the customs duty accordingly - the imported consignment of marble is liable for confiscation under Section 111(d) of Customs Act, 1962 due to misdeclaration of the value. Redemption fine - redemption fine of ₹ 16 lakhs as against the value of ₹ 47,21,686/-, is excessive as normally when the redetermination of value is accepted and customs duty liability is discharged if there is no allegation that there was misdeclaration of quantity, tribunal has been taking a consistent view that the redemption fine should be 20% of the enhanced/combined CIF value - the redemption fine reduced to ₹ 10 lakhs. As regards penalty, we hold that penalty imposed by the adjudicating authority of ₹ 10 lakhs is excessive and accordingly, we reduce the same to ₹ 5,00,000/-. Appeal disposed off - decided partly in favor of appellant.

Summary

Issues: Redemption fine and penalty imposed on irregular importation of marble slabs.

In this case, the Appellate Tribunal CESTAT MUMBAI heard an appeal against Order-in-Original related to the redemption fine and penalty imposed on the irregular importation of marble slabs. The appellant had declared a value of US $22/sqm for the marble slabs, but the contemporaneous value was higher at US $33/sqm. The customs authorities raised concerns about the valuation discrepancy and conducted a market survey to ascertain the margin of profit. The adjudicating authority determined a higher value for the imported goods, leading to the discharge of customs duty by the appellant. The Tribunal agreed that the imported consignment was liable for confiscation under Section 111(d) of the Customs Act, 1962 due to misdeclaration of value. However, the Tribunal disagreed with the redemption fine imposed by the adjudicating authority, considering it excessive at &8377; 16 lakhs compared to the redetermined value of &8377; 47,21,686. The Tribunal, following a consistent view, reduced the redemption fine to &8377; 10 lakhs, which is 20% of the enhanced CIF value.

Regarding the penalty, the Tribunal upheld the confiscation under Section 111(d) of the Customs Act, 1962. However, considering the excessive nature of the penalty imposed at &8377; 10 lakhs, the Tribunal reduced it to &8377; 5,00,000, which is 10% of the combined CIF value. The impugned order was upheld with modifications to the redemption fine and penalty. The appeal was disposed of accordingly, with any consequential relief. The operative part of the judgment was pronounced in court by the Tribunal.