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2016 (12) TMI 1372 - AT - CustomsImposition of redemption fine and penalty - the redemption fine has been imposed exorbitantly without even conducting any market enquiry to ascertain the market price prevalent so as to determine the margin of profit, and were prayed to be set aside - Held that - the appellant has declared values which are very much less than the minimum specified as above. Consequently, the import goods are liable for confiscation as has been held by the authorities below - however, the ends of justice will be met by reducing the redemption fine to 7.5% of the value of the goods approved for payment of duty. The penalties imposed are, however, upheld - decided partly in favor of appellant - appeal disposed off.
Issues: Challenge to customs order on valuation of imported goods, confiscation, redemption fine, and penalties.
Analysis: 1. Challenge to Customs Order on Valuation: The appellant imported polished marble slabs at a declared value lower than the minimum specified value for freely importable goods. Customs authorities proposed an enhancement of value based on the specified minimum, leading to the confiscation of goods. The Commissioner (A) upheld the confiscation but reduced the redemption fine to 10% of the value approved for duty payment. The appellant contested this, arguing that the redemption fine was excessive without a proper market enquiry to determine profit margins. They sought the setting aside of the redemption fine and penalties. 2. Confiscation and Reduction of Redemption Fine: The Tribunal acknowledged that the goods were liable for confiscation due to undervaluation. Despite this, the Tribunal considered the appellant's plea regarding the redemption fine. After reviewing the case records and arguments from both sides, the Tribunal deemed it appropriate to further reduce the redemption fine to 7.5% of the value approved for duty payment. The penalties imposed by the authorities were upheld in this context. 3. Operative Order: The Tribunal pronounced the operative portion of the order on 28.10.2016, reflecting the decision to reduce the redemption fine to 7.5% while upholding the penalties imposed. This decision aimed to balance the enforcement of customs regulations with considerations of fairness and proportionality in imposing fines and penalties for undervaluation of imported goods.
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