Redemption fine and penalty on vehicle import reduced after finding the goods new, unused, unregistered, and marketable only after fitting.

Import of a vehicle was treated as involving mitigation in the quantum of redemption fine and penalty where the vehicle was found to be new, unused and unregistered, and the record showed that it became a complete marketable consumer product only after the seating arrangement was fitted in Thailand. The declared value was accepted by the adjudicating authority, and the licensing position under Chapter 87 was considered relevant to the import. On that basis, the original fine and penalty were regarded as harsh and excessive, and the amounts were reduced in favour of the assessee.

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Issues: Whether the redemption fine and penalty imposed on import of the vehicle deserved reduction.

Analysis: The imported vehicle was found to be new, unused and unregistered, and the record indicated that it became a complete marketable consumer product only after the seating arrangement was fitted in Thailand. The declared value was also accepted by the adjudicating authority. In these circumstances, and in view of the mitigation arising from the nature of the import and the licensing position under Chapter 87, the original quantum of fine and penalty was considered harsh and excessive.

Conclusion: The fine and penalty were reduced, and the relief was granted in favour of the assessee.

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