2017 (11) TMI 305 - AT - Customs

Import of Used Copier Machines: Upheld Valuation, Confiscation, Redemption Fine, and Penalty

The Tribunal upheld the Commissioner of Customs (Appeals) order regarding the valuation, confiscation, redemption fine, and penalty for importing used ... Redemption Fine - Penalty - import of photocopier - restricted item - Held that: - the imposition of fine and penalty in the present case is not exorbitant because the imported photocopier during the relevant time was not permissible to import under Foreign Trade Policy without a license as it was restricted item, therefore the appellant has violated the Foreign Trade Policy - appeal dismissed - decided against appellant. Issues:1. Valuation of imported goods2. Confiscation of goods under Customs Act, 19623. Imposition of redemption fine and penalty4. Compliance with Foreign Trade PolicyValuation of imported goods:The appellant imported used analog copier machines with accessories and attachment. An independent engineer valued the goods at USD 40,930 against the declared value of USD 36,830. The Additional Commissioner assessed the value at &8377; 19,77,347 and confiscated the goods under relevant provisions. The appellant accepted the valuation to avoid litigation and demurrage charges.Confiscation of goods under Customs Act, 1962:The imported goods were confiscated under Section 111(d) of the Customs Act, 1962 read with Section 3(3) of the Foreign Trade (D & R) Act, 1992. The appellant was allowed to redeem the goods on payment of redemption fine and duty. A penalty was also imposed, which the appellant paid in full before challenging it before the Commissioner (A).Imposition of redemption fine and penalty:The appellant challenged the redemption fine of &8377; 6.5 lakh and penalty of &8377; 2 lakh as exorbitant. The appellant argued no suppression of facts and limited profit margin. The AR defended the impugned order, stating the goods were restricted, requiring a license for importation, which the appellant did not have. The fine and penalty were upheld as not exorbitant due to the violation of the Foreign Trade Policy.Compliance with Foreign Trade Policy:The appellant imported restricted goods without the necessary license as per the Foreign Trade Policy. Both authorities imposed the fine and penalty, considering the violation of the policy. The Tribunal upheld the impugned order, dismissing the appeal of the appellant.The Tribunal, in the present case, upheld the impugned order passed by the Commissioner of Customs (Appeals) regarding the valuation, confiscation, redemption fine, and penalty related to the importation of used analog copier machines. The appellant's challenge against the redemption fine and penalty was dismissed as not exorbitant, considering the violation of the Foreign Trade Policy. The judgment emphasizes the importance of compliance with import regulations and the consequences of importing restricted goods without the necessary licenses.