Import restriction and redemption fine relief applied where confiscated marble imports met valuation scrutiny but penalty quantum was moderated.

Import restriction and licensing conditions for rough marble blocks were not complied with, so confiscation was justified. The declared value, as redetermined under the Customs Valuation Rules, 2007, was accepted and not disputed. However, the quantum of redemption fine and penalty was examined with reference to Section 125 of the Customs Act, 1962 and the margin of profit in normal trade, and the amounts were reduced in line with earlier similar cases.

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Issues: Reduction of redemption fine and penalty in respect of confiscated restricted imports where the declared value was accepted as redetermined and the importer sought limited relief on quantum.

Analysis: The imported rough marble blocks were subject to import restriction and required compliance with the prescribed licensing conditions. The importer had not followed the notification and policy requirements, so confiscation was justified. The assessed value redetermined under the Customs Valuation Rules, 2007 was not disputed. However, while fixing redemption fine and penalty, the original authority had not properly considered the margin of profit in normal trade. The quantum was therefore examined with reference to Section 125 of the Customs Act, 1962 and the approach adopted in earlier similar cases, where the fine and penalty were reduced.

Conclusion: The redemption fine and penalty were reduced to Rs. 14,00,000 and Rs. 3,50,000 respectively, and the appeal succeeded only to that limited extent.

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