2023 (7) TMI 1030 - AT - Customs

Redemption fine and penalty - appellant has accepted the enhanced value as per the Chartered Engineer s certificate - redetermination of value of imported Multifunction machines (used and second hand) - HELD THAT - It is seen from the records that there have been number of orders issued by this Tribunal and High Courts accepting the fact that the impugned MFDs are not liable for absolute confiscation. Hence have taken a lenient view and released these goods on payment of redemption fine of 10% penalty of 5%. In the case of ACCORD DIGITECH VERSUS C. C-BANGALORE 2020 (12) TMI 647 - CESTAT BANGALORE by this Tribunal it is clearly evident that the used Digital Multifunction Printing and Copying Machine were released on payment of redemption fine of 10% and penalty of 5% of the enhanced value of the imported goods. The present appeal is partially allowed by reducing the redemption fine to 10% of the enhanced value and penalty to 5% of the enhanced value. Appellant is allowed to redeem the goods for home consumption.

Summary

Issues involved:
The issues involved in the judgment include the classification of imported goods as restricted items under Section 111 of the Customs Act, 1962, the absolute confiscation of goods, the imposition of penalty, the remand order by the Commissioner (Appeals), the determination of redemption fine and penalty, and the delay in releasing the goods.

Classification of Goods and Confiscation:
The appellant imported used Multifunction machines and declared the value. The goods were examined by a Chartered Engineer who assessed the value higher than declared. The Adjudication Authority ordered absolute confiscation of the goods, classifying them as restricted items. The Commissioner (Appeals) later allowed redemption of goods on payment of fine and penalty, disagreeing with the absolute confiscation.

Penalty and Redemption Fine:
The appellant argued that the goods were not liable for confiscation based on legal precedents. They also highlighted the delay in releasing the goods and requested a waiver of detention charges. The Tribunal considered previous cases and reduced the redemption fine and penalty to 10% and 5% respectively of the enhanced value, citing similar judgments and the interest of justice due to the lapse of time.

Market Value Determination and Remand Order:
The Tribunal discussed the need to ascertain the market value of the goods for determining redemption fine. The appellant pointed out delays in previous remand orders and subsequent appeals, emphasizing the impact on the importer. The Tribunal referenced specific directions given in previous cases and reduced the redemption fine and penalty based on established percentages of the enhanced value.

Final Decision:
Considering previous decisions and the acceptance of similar outcomes by the Department, the Tribunal partially allowed the appeal by reducing the redemption fine and penalty to 10% and 5% of the enhanced value, respectively. The appellant was permitted to redeem the goods for home consumption under the revised terms. The decision was pronounced in the Open Court on 24.07.2023.