9911796707
TMI Blog2008 (1) TMI 402X X X X Extracts X X X X X X X X Extracts X X X X ..... the adjudicating authority imposes deterrent penalty in order to stop the imports in violation of the Foreign Trade Policy? Held that:- The fixation of the quantum of redemption is an exercise of discretionary jurisdiction of the authorities under the Customs Act. The Court can interfere only in the circumstances in which it was demonstrated before it that the order of the Tribunal is thoroughly arbitrary, whimsical and resulting in miscarriage of justice. As already stated, the Tribunal has followed its own earlier decision wherein the Tribunal has consistently imposed the redemption fine at 15 percent and penalty under Section 112(a) at 5 percent of the value of the goods, which factum has not been disputed by the counsel appearing for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or want of import licence, as to why penalty should not be imposed on the importers and as to why the value appraised by the Chartered Engineer should not be adopted for the purpose of assessment. 3. On adjudication, the Commissioner of Customs passed orders (a) enhancing the value of the goods under Rule 8 of the Customs Valuation Rules, 1988 read with Section 14(1) of the Customs Act on the basis of the Chartered Engineer's appraisal, (b) confiscating the goods under Section 111(d) of the Customs Act read with Section 3(3) of the Foreign Trade (Development and Regulation) Act with option for redemption against payment of fine under Section 125 of the Customs Act as well as payment of appropriate duty and (c) imposing penalties on the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... econd-hand machinery imported in contravention of the EXIM policy, the fine imposed should be such so that the importer does not, under any circumstance, make a profit on its use or resale in India. The penalty should also be commensurate with the offence committed, particularly when the importers deliberately imported goods knowing fully well that the import of such goods is restricted under the EXIM Policy. He further contended that in this case there was no evidence adduced by the importers that they had made an attempt to procure import licence for the purpose of importing the goods. Thus, he contended that the action of the importers is deliberate and the Central Excise and Service Tax Appellate Tribunal should not have reduced the red ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , does or omits to do any act which act or omission would render such goods liable to confiscation under Section 111, or abets the doing or omission of such an act, or (b) who acquires possession of or is in any way concerned in carrying, removing, depositing, harbouring, keeping, concealing, selling or purchasing, or in any other manner dealing with any goods which he knows or has reason to believe are liable to confiscation under section 111, shall be liable,- (i) in the case of goods in respect of which any prohibition is in force under this Act or any other law for the time being in force, to a penalty not exceeding the value of the goods or five thousand rupees, whichever is the greater; (ii) in the case of dutiable goods, other tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted. Thus, a discretion is vested on the authorities with a rider that the imposition of redemption fine should not exceed the market price. 10. Likewise, under Section 112(a) also, the statutory prescription is in the case of goods in respect of which any prohibition is in force under the Customs Act, or any other law the penalty imposable shall not exceed the value of the goods or Rs. 5,000/-, whichever is greater. In respect of dutiable goods other than prohibited goods, the penalty could be imposed not exceeding the duty sought to be evaded on such goods or Rs. 5,000/- whichever is greater. 11. Here again, the maximum that could be levied is only prescribed. There is no statutory prescription that the penalty should not be reduced by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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