2009 (10) TMI 818 - AT - Customs

Customs Violations Appeal: Upheld Redemption Fine Decision; Emphasizing Compliance with Current Laws

The Revenue's appeal seeking an increase in redemption imposed on respondents for customs violations was dismissed. The case involved discrepancies in ... - Issues:- Appeal for enhancement of redemption imposed on respondents- Validity of redemption fine imposed by adjudicating authority- Relevance of Board's instruction on redemption fine percentageAnalysis:1. The appeal was filed by the Revenue seeking an increase in the redemption imposed on the respondents by the original adjudicating authority. The case revolved around the arrival of the respondents at Mumbai Airport with unaccompanied baggage that arrived by sea. A discrepancy was found in the declared value of goods, specifically undergarments valued at Rs. 40,000, which were misdeclared as commercial consumer goods. The adjudicating authority confiscated the goods with an option for clearance on payment of a fine of Rs. 8,000, in addition to a penalty of Rs. 2,000, a decision upheld by the lower appellate authority.2. The Revenue argued that the redemption fine should have been set at 50% of the value of the goods based on a Board's instruction from 1970. However, the presiding judge noted that the Import Control Act, under which the 1970 instruction was issued, had been repealed in 1992 with the enactment of the Foreign Trade Act and Orders. The judge highlighted that the 1970 instruction had become obsolete and did not align with current regulations. The judge emphasized that the instruction pertained to specific norms for clearing cargo consignments, particularly focusing on basic articles like non-interchangeable parts, unfinished forms, casting, forging, and specialized raw materials.3. Upon examination, the judge found no errors in the lower appellate authority's decision and upheld the findings, ultimately dismissing the Revenue's appeal. The judgment emphasized the outdated nature of the 1970 instruction and its inapplicability in the current regulatory framework. The decision underscored the importance of adherence to current laws and regulations in determining fines and penalties related to customs violations.This detailed analysis provides a comprehensive overview of the issues addressed in the legal judgment, focusing on the appeal for redemption enhancement, the validity of the redemption fine, and the relevance of historical instructions in the context of current legal frameworks.