Redemption fine and penalty on imported rolling mill rollers reduced after goods and declarations were found consistent with assessed value

Import of old and used rollers for rolling mills was examined under the Exim Policy and customs classification framework. The goods were treated as machinery parts used in rolling mills for production and manufacture, although they were not regarded as capital goods on a strict policy reading. The import declarations on description and value were found to be correct, with no discrepancy in the import particulars. On that basis, the redemption fine and penalty were considered excessive in light of the nature of the goods, their use, and the assessed value, and were substantially reduced, granting only partial relief to the importer.

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Issues: Whether the redemption fine and penalty imposed on import of old and used rollers for rolling mills were excessive and required reduction.

Analysis: The imported rollers were held not to be capital goods on a strict reading of the Exim Policy, but they were classified under the machinery chapter and were used as parts of rolling mills for production and manufacture. The declarations regarding description and value were found to be correct, and there was no discrepancy in the import particulars. In view of the nature of the goods, their use, and the assessed value, the originally imposed fine and penalty were considered on the higher side.

Conclusion: The redemption fine and penalty were reduced substantially, resulting in only partial relief to the assessee.

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