MRP-based import assessment requires retail sale price disclosure; non-declaration can trigger confiscation, while penalties must remain proportionate.

Imported colour plasma television sets and accessories subject to MRP/RSP-based CVD assessment had to be cleared with the retail sale price declared on the import consignments. Non-declaration led to short payment of duty and justified confiscation and penal action, as the omission was not attributable to any customs-system fault and was detectable only on re-assessment. However, while confiscation and penalty were sustained, the redemption fine and penalty were found excessive in light of the duty involved and were reduced to a proportionate level.

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Issues: (i) Whether colour plasma television sets and accessories were liable to MRP/RSP based CVD assessment and whether non-declaration of the retail sale price justified confiscation and penalty. (ii) Whether the redemption fine and penalty imposed were excessive and required reduction.

Issue (i): Whether colour plasma television sets and accessories were liable to MRP/RSP based CVD assessment and whether non-declaration of the retail sale price justified confiscation and penalty.

Analysis: The imported goods falling under the relevant tariff entry were required to bear assessment on the basis of retail sale price, and the retail sale price was required to be declared on the import consignments. The importer had not declared the retail sale price, resulting in short payment of duty. The omission was not attributable to any fault in the customs system; the non-declaration could be detected only at the stage of re-assessment. On that basis, the goods were liable to confiscation and the importer was liable to penal action.

Conclusion: The goods were correctly held liable to confiscation and penalty was leviable.

Issue (ii): Whether the redemption fine and penalty imposed were excessive and required reduction.

Analysis: Although liability to confiscation and penalty was upheld, the quantum imposed was found to be harsh having regard to the duty involved. The fine and penalty were therefore reduced to meet the ends of justice.

Conclusion: The redemption fine and penalty were reduced.

Final Conclusion: The appeal succeeded only to the extent of reduction in the quantum of redemption fine and penalty, while the finding of liability to confiscation and penal consequences was sustained.

Ratio Decidendi: Where imported goods requiring retail sale price based assessment are cleared without declaration of the retail sale price, confiscation and penalty may follow, but the monetary penalty and redemption fine must remain proportionate to the duty involved.

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