Redemption fine and penalty reduced for copper scrap import mismatch after the Tribunal found the amounts excessive.

Redemption fine and penalty on copper scrap imports were found excessive where the supplier had shipped copper scrap instead of the heavy melting scrap ordered, and the Bill of Entry was filed on the basis of the documents received. The Tribunal accepted the explanation, noted the limited differential duty involved, and reduced the fine and penalty as disproportionate. The redemption fine was reduced to Rs. 2,50,000 and the penalty to Rs. 1,50,000, while the remainder of the order was left undisturbed.

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Issues: Whether the redemption fine and penalty imposed in respect of the copper scrap were excessive and liable to be reduced.

Analysis: The appellant limited the challenge to the redemption fine and penalty relating to the copper scrap. The Tribunal noted the explanation that the supplier had dispatched copper scrap on its own although the order was for heavy melting scrap only, and that the Bill of Entry had been filed on the basis of the documents received. Taking into account the explanation and the limited differential duty involved, the Tribunal held that the impugned fine and penalty were excessive and warranted reduction.

Conclusion: The redemption fine was reduced to Rs. 2,50,000 and the penalty was reduced to Rs. 1,50,000, while the remaining part of the order was left undisturbed.

Final Conclusion: The challenge succeeded only to the extent of reduction of the monetary penalties and fine, and the appeal was otherwise left intact.

Ratio Decidendi: Where the surrounding circumstances show absence of mala fide intent and the quantum involved is limited, redemption fine and penalty may be reduced as excessive.

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