2007 (1) TMI 35 - AT - Customs

Appeal on Confiscated Goods: Fine and Penalty Reduced, Emphasis on Import Compliance

The appeal arose from the confiscation of used Photocopier Copying Assembly imported without a license under the Export-Import Policy. The goods were ... Valuation (Customs) – Alleged that appellant has imported used Photocopier Copying assembly without obtaining licence under the EXIM Policy and accordingly redemption fine & penalty imposed on him – Authority after considering the fact allow the appeal with consequential relief. Issues:1. Import of used Photocopier Copying Assembly without obtaining license under Export-Import Policy.2. Confiscation of goods and imposition of fine and penalty.3. Appeal against the order confirming confiscation.4. Valuation of the goods.5. Reduction of Redemption Fine (RF) and penalty.Analysis:1. The appeal in this case arose from the order confirming the confiscation of used Photocopier Copying Assembly imported without obtaining a license under the Export-Import Policy. The goods were allowed to be redeemed on payment of fine and penalty.2. The value of the goods was determined to be Rs. 11,98,870/- with a Redemption Fine (RF) of Rs. 2,40,000/- and a penalty of Rs. 3,60,000/- imposed. The Commissioner did not grant any benefit regarding this.3. The appellants did not respond to the notice issued, despite several adjournments. The learned JCDR submitted that similar orders of confiscation had been upheld by the Tribunal in other cases, granting relief only on the quantum of RF and penalty to the extent of 10% and 5% respectively based on earlier judgments.4. The valuation of the goods was carefully considered, with an independent Chartered Engineer certifying the goods to be between 6 to 9 years old and valued at a higher rate than declared by the appellants. The appellants did not request to cross-examine the Chartered Engineer, leading to the confirmation of the valuation adopted by the department.5. The Tribunal, after examining the matter on its merits and considering previous judgments, reduced the RF to 10% of the value and penalty to 5% of the value. The impugned order was modified accordingly, granting relief only on the reduction of RF and penalty. The appeal was disposed of in this manner.This judgment highlights the importance of compliance with import regulations, proper valuation of goods, and the Tribunal's discretion in granting relief on the quantum of fines and penalties based on previous judgments.