Tribunal reduces redemption fine, upholds penalty

The Tribunal upheld the adjudicating authority's decision on the assessable value violation but found the redemption fine excessive. The usual redemption fine of 20% of the enhanced value was reduced from 11 lakhs to 4 lakhs. The penalty of 50,000 imposed on the appellant was upheld. The appeal was disposed of by reducing the redemption fine to 4 lakhs and maintaining the penalty.

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

Analysis:
The appeal was directed against an Order-in-Original passed by the Commissioner of Customs regarding the redemption fine and penalties imposed. The appellant had imported polished marble blocks and declared a value, which was provisionally assessed and later finalized by enhancing the value. The Customs authorities held that the imports were undervalued and imposed a fine of &8377; 11 lakhs in lieu of confiscation and a penalty of &8377; 50,000 under the Customs Act. The adjudicating authority found mis-declaration and upheld the enhancement of value, stating that the goods were liable for confiscation under the Customs Act.

Upon considering the submissions, the Tribunal upheld the adjudicating authority's decision on the assessable value being less than the prescribed limit under the Policy, thus violating policy provisions. However, the Tribunal found the redemption fine of &8377; 11 lakhs to be excessive compared to the norms observed in similar cases. The Tribunal noted that the usual redemption fine is imposed at 20% of the enhanced value, which in this case would be around &8377; 4 lakhs. Therefore, the redemption fine was reduced to &8377; 4 lakhs to meet the ends of justice. The penalty imposed was deemed not excessive in relation to the value of the marble.

Consequently, the appeal was disposed of by reducing the redemption fine to &8377; 4 lakhs, while upholding the penalty imposed on the appellant.

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