Redemption fine and penalty on restricted second-hand imports reduced to 10% and 5% of enhanced value.

Restricted second-hand digital multi-function printers imported in breach of import restrictions were liable to confiscation under customs and foreign trade law, but the dispute centred on the quantum of redemption fine and penalty. As the value had been enhanced on Chartered Engineer assessment and no contrary market enquiry was shown, the Tribunal followed its consistent approach that redemption fine should ordinarily be fixed at 10% and penalty at 5% of the enhanced value. The monetary sanctions were therefore reduced accordingly, while the confiscation finding remained undisturbed.

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Issues: Whether the redemption fine and penalty imposed for import of restricted second-hand digital multi-function printers were required to be reduced to 10% and 5% of the enhanced value.

Analysis: The goods were held to have been imported in violation of the import restriction applicable to second-hand goods, and confiscation was attracted under the Customs law read with the foreign trade law. The only matter requiring determination was the quantum of redemption fine and penalty. The value had been enhanced on the basis of Chartered Engineer assessment, and the Tribunal followed its earlier consistent view that, in such cases, fine and penalty should ordinarily be fixed at 10% and 5% of the enhanced value respectively.

Conclusion: The redemption fine and penalty were reduced to 10% and 5% respectively of the enhanced value, in favour of the assessee.

Final Conclusion: The impugned order was modified only to the extent of reducing the monetary sanctions, while the confiscation-related finding remained undisturbed.

Ratio Decidendi: Where imported restricted goods are valued on a Chartered Engineer's assessment and no contrary market enquiry is shown, the appropriate quantum of redemption fine and penalty is 10% and 5% of the enhanced value respectively.

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