Parity in import confiscation matters justified reduction of redemption fine and penalty for marble consignments.

Liability to confiscation for marble consignments imported in contravention of the Foreign Trade (Development and Regulation) Act, 1992 and the Exim Policy was not disputed; the issue was only the quantum of redemption fine and penalty. Taking account of parity with similar cases and the treatment of comparable imports, CEGAT reduced the fine and penalty to roughly 20% and 5% of CIF value respectively. The confiscation itself remained undisturbed, and the appeals succeeded only to the extent of reduction in the monetary sanctions.

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Issues: Whether the redemption fine and penalties imposed on importers, in respect of marble consignments liable to confiscation for import in contravention of the Foreign Trade (Development and Regulation) Act, 1992 and the Exim Policy, required reduction.

Analysis: The liability to confiscation was not disputed. The only question before the Tribunal was the quantum of fine and penalty. Taking note of the disposal of similar cases and the need for parity in the treatment of comparable imports, the Tribunal held that the fine and penalty deserved reduction to approximately 20% and 5% of the CIF value respectively.

Conclusion: The redemption fine and penalties were reduced to Rs. 25 lakhs and Rs. 7.5 lakhs in one appeal, and to Rs. 7 lakhs and Rs. 2 lakhs in the other appeal.

Final Conclusion: The appeals succeeded only to the extent of reduction in redemption fine and penalty, while the confiscation itself remained undisturbed.

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