Revenue appeal over redemption fine & penalty dismissed under Customs Act.

The appeal was filed by the Revenue against the imposition of a redemption fine of Rs. 9,00,000 and a penalty of Rs. 2,00,000 on the importer for clearing old copier machines under section 111 (d) of the Customs Act, 1962. The Revenue contended that the fine and penalty were too low, alleging policy violation. The Judicial Member upheld the Commissioner's decision, citing considerations from judgments of the Madras High Court and the High Court of Kerala. The appeal was dismissed, affirming the imposition of the fine and penalty as per the original order dated 23.10.2009.

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Issues: Appeal against imposition of fine and penalty under Customs Act, 1962.

Analysis:
1. Imposition of Redemption Fine and Penalty: The appeal was filed by the Revenue against the order of the Commissioner Customs imposing a redemption fine of Rs. 9,00,000 and a penalty of Rs. 2,00,000 on the importer for clearance of old copier machines. The Commissioner confiscated the goods under section 111 (d) of the Customs Act, 1962 and allowed redemption on payment of the fine. The Revenue contended that the fine and penalty were too low compared to the value of the goods and policy violation.

2. Contentions of the Parties: The Revenue argued that the fine and penalty should have been equal to the value of the goods due to policy violation. On the other hand, the Counsel for the Assessee defended the order, stating that the Commissioner considered various appellate orders reducing fines and penalties to 10% and 5%. The Counsel also mentioned the judgments of the Madras High Court and the High Court of Kerala, which were considered by the Commissioner while imposing the fine and penalty.

3. Judgment: After hearing both parties, the Judicial Member found no fault in the Commissioner's order imposing the redemption fine and penalty. The Commissioner's decision was upheld based on the consideration of the judgments from the Madras High Court and the High Court of Kerala. The appeal by the Revenue was dismissed, affirming the imposition of the fine and penalty as per the original order dated 23.10.2009. The judgment was pronounced on 14/09/2017 in open court.

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