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TMI Blog2004 (10) TMI 514X X X X Extracts X X X X X X X X Extracts X X X X ..... t to be cleared on Bill of Entry No. 287, dated 23-10-1997 at declared valued of Rs. 11,58,568/- Matter was adjudicated by the Commissioner, an offer of redemption on fine of Rs. 12 lakhs in lieu of confiscation under section 111(d) was arrived at along with a penalty of Rs. one lakh, imposed under Section 112 of the Customs Act, 1962. 2. The order has been arrived at, ignoring inter alia, the following written submissions on post import costs, filed vide letter dated 24-10-1997. The barest costs involved in importation are as under and all the expenses stated below will have to incurred by us:- (1) Procurement Expenses:- which have to be incurred in foreign countries which include locating such products from markets overseas selecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Commissioner has not arrived at any reasons, why he kept the fine the level of 100%. The appellant had submitted data regarding post-import costs margin of profit. No finding thereon are arrived at. In this view of the matter the order of 100% redemption fine, as arrived, cannot be sustained even while upholding the liability to confiscation under Section 111(d). It was incumbent on the Commissioner to have recorded reasons as to why he was ignoring the instruction in the Appraising Manual and arriving at the fine at level of 100%. The Appraising Manual Vol. II Chapter 5 para 5 prescribes - 5. Margin of Profit (a) Market enquiries - In terms of section 125 of the Customs Act, 1962 the adjudication officer may impose a redem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profit. List of Basic Articles : (i) Non-interchangeable parts of machinery and equipment (except cinema equipment) designed for use in project, mining, factories, agriculture, laboratories, training institutes and hospitals ( Equipment will include instruments, apparatus and appliances and also specialised vehicles like Dumper and Fork-lift trucks). (ii) (a) Unfinished forms, casting and forging of non-interchangeable parts specified under (i) above. (iii) Specialized raw materials and intermediates for use in mining and in the manufacture of metals and alloys, leather, rubber, mineral oils, drugs and medicines, insecticides, pesticides, etc. Board has also clarified that the fine should equal to the normal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al in the case of Gripwell Forgings Tools [2002 (103) ECR 67], therefore as prescribed, in the Manual, for Basic goods, redemption fines could not go beyond 50% if and when so required, special reasons are to be found to exist. No such special reasons are found by the adjudicator in the impugned order. (b) The absence of the application of the adjudicators mind, on this vital issue of quantum, as found herein above cannot be substituted by the submissions made by the ld. DR and his reliance on the decisions in the case of Margra Industries Limited - 2004 (171) E.L.T. 334 (Tri.-Del), S.S.P. International Enterprises - 2003 (158) E.L.T. 479 (Tri.-Chennai), Orion Business Systems (P) Ltd. - 2002 (141) E.L.T. 411, Shree Ram Enterprises ..... X X X X Extracts X X X X X X X X Extracts X X X X
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