2020 (1) TMI 146 - AT - Customs

Valuation of imported goods - old and used worn clothing - enhancement of value - quantum of redemption fine and penalty - HELD THAT - The enhancement of value has been ordered by the First Appellate Authority on the basis of concurrence given by the importer for such enhancement. There is no challenge to the order of confiscation, but Revenue is challenging the quantum of redemption fine and penalty, which stand reduced by the learned Commissioner(Appeals). The learned Commissioner(Appeals) has ordered reduction of redemption fine and personal penalty on the basis of ratio laid down by the Tribunal in the case of Omex International Vs. Commissioner of Customs, New Delhi M/S. OMEX INTERNATIONAL VERSUS COMMISSIONER OF CUSTOMS, NEW DELHI 2015 (4) TMI 112 - CESTAT NEW DELHI (LB) . The Tribunal has taken the view that redemption fine of 10% and penalty of 5% of the value of the imported goods, would be appropriate in case of import violating Exim Policy Provisions. There are no reason to interfere with the findings of the learned Commissioner(Appeals) on the basis of such decision - appeal dismissed - decided against Revenue.

Summary

Issues:
Delay in filing the appeal before the Tribunal, enhancement of value of imported goods, confiscation of goods, reduction of redemption fine and penalty, challenge by Revenue on reduction of fine and penalty, applicability of precedent on redemption fine and penalty.

Delay Condonation:
The Appellant filed a Miscellaneous Application for condonation of delay in filing the appeal before the Tribunal, which was allowed after considering the reasons provided in the application.

Enhancement of Value and Confiscation:
The Respondent imported old and used clothing with a declared value that was enhanced during original assessment. The goods were confiscated under Section 111(d) of the Customs Act, 1962, for violating Import Trade Control restrictions.

Reduction of Redemption Fine and Penalty:
The First Appellate Authority upheld the confiscation and value enhancement but reduced the redemption fine and personal penalty. The Revenue challenged this reduction, arguing for an increase to act as a deterrent against repeated violations.

Legal Basis for Reduction:
The reduction in redemption fine and penalty was based on a precedent set in the case of Omex International Vs. Commissioner of Customs, where the Tribunal established that a 10% redemption fine and 5% penalty of the imported goods' value would be appropriate for violations of Exim Policy Provisions.

Decision and Disposition:
The Tribunal upheld the impugned order, rejecting the Revenue's appeal and disposing of the Miscellaneous Application. The decision was made after considering the arguments presented by the Authorized Representative for the Revenue and finding no reason to interfere with the First Appellate Authority's findings based on the established precedent.

Conclusion:
The judgment focused on the condonation of delay, the confiscation of goods due to value enhancement, and the reduction of redemption fine and penalty. The decision highlighted the importance of precedents in determining appropriate fines and penalties for import violations, ultimately upholding the reduction made by the First Appellate Authority.