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2024 (6) TMI 780 - AT - CustomsIssues involved: Appeal against Order-in-Original regarding confiscation of imported goods and imposition of fine and penalty. Confiscation of Goods: The appellant imported old and used Digital Multi Function Printers in contravention of Foreign Trade Policy, leading to confiscation under Section 111(d) of the Customs Act, 1962. The Chartered Engineer assessed the value at Rs.95,38,626, and an option to redeem the goods on payment of a fine of Rs.17.00 lakhs was provided, along with a penalty of Rs.7.00 lakhs. Imposition of Fine and Penalty: The key issue was whether the imposition of fine and penalty exceeding 10% and 5% respectively, in a case involving the violation of DGFT conditions, was justified. The Tribunal referred to previous decisions where it was held that in cases where the value had been enhanced based on a certificate by a Chartered Engineer without market enquiry, a fine and penalty of 10% and 5% of the enhanced value, respectively, would meet the ends of justice. This approach was consistent with various judgments and was upheld by the Karnataka High Court. Consequently, the impugned order was modified, reducing the fine and penalty to 10% and 5% of the enhanced value, respectively. Conclusion: The impugned order was modified, reducing the fine and penalty to 10% and 5% of the enhanced value, in line with established precedents and legal principles.
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