Redemption fine and penalty on second-hand copier imports reduced after the monetary consequences were found excessive.

Redemption fine and penalty on import of second-hand multi-functional copiers and printers were examined on the basis of the material available, including an asserted market enquiry and a 37.8% margin of profit used to fix monetary consequences. As the supporting data for the enquiry was not disclosed and the amounts were considered excessive, both levies were moderated. The redemption fine was reduced to Rs. 13 lakhs and the penalty to Rs. 6 lakhs, while the enhanced value and differential duty were left unchanged.

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Issues: Whether the redemption fine and penalty imposed on import of second-hand multi-functional device copiers and printers were excessive and required reduction.

Analysis: The appellant did not contest the enhanced value or the differential duty and confined the challenge to the redemption fine and penalty. The adjudicating authority had stated that a market enquiry was conducted, but no supporting discussion or data was made available. The margin of profit was taken at 37.8% for fixing the monetary consequences. On the material placed, the fine and penalty were found to be on the higher side and required moderation.

Conclusion: The redemption fine and penalty were reduced to Rs. 13 lakhs and Rs. 6 lakhs respectively; the duty demand and enhanced value were left undisturbed.

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