Appeals Result in Reduction of Redemption Fine and Penalties

The appeals were disposed of by reducing both the redemption fine and penalties imposed. The redemption fine was reduced to Rs. 4.6 lakhs for both appellants, and the penalties were reduced to Rs. 2 lakhs each. The judgment was delivered on 2nd December 2016.

---

---

Issues:
Redemption fine imposed in lieu of confiscation and penalties.

Analysis:
The appeals were directed against an Order-in-Original passed by the Commissioner of Customs (Import), Mumbai, regarding the redemption fine and penalties imposed. The appellants had imported rough marble blocks, which were provisionally assessed and later finalized with an enhanced value. The Customs authorities found mis-declaration as the goods imported were described as marble blocks but were actually calcareous stone, which was restricted. The adjudicating authority imposed a redemption fine of Rs. 38 lakhs in lieu of confiscation and penalties under Section 112(a) of the Customs Act, 1962. The authority held that the goods were liable for confiscation under Section 111(d) and (m) of the Customs Act, 1962.

Upon considering the submissions, the Member (Judicial) found that the goods imported were indeed calcareous stone other than marble, which required a specific license for import during that period. The impugned order regarding this aspect was upheld. However, concerning the redemption fine, it was noted that the adjudicating authority had imposed a fine higher than the market price or the landed cost. Referring to previous Tribunal decisions, the redemption fine was reduced to Rs. 4.6 lakhs for both appellants, Just Marble and Vaishno Marble, to meet the ends of justice. The penalties imposed were also reduced as they were found excessive in relation to the value of the goods. The penalties were reduced to Rs. 2 lakhs each for both appellants, in line with Tribunal decisions suggesting a penalty of 10% of the landed cost of imported goods.

In conclusion, the appeals were disposed of by reducing both the redemption fine and penalties imposed, bringing the judgment to a close on 2nd December 2016.

---