2000 (6) TMI 586 - AT - Customs

Import Appeal: Fine Reduced from Rs. 49 lakhs to Rs. 12 lakhs for Garlic Grade-A, Penalty Adjusted

The appeal against Order-in-Original No. 37/99 concerning the import of Garlic Super Quality Grade-A resulted in the reduction of the Redemption Fine from ... Confiscation - Penalty Issues:- Appeal against Order-in-Original regarding import of Garlic Super Quality Grade-A- Confiscation under Section 111(d) of the Customs Act due to ITC Policy violation- Imposition of Redemption Fine of Rs. 49 lakhs on goods valued at Rs. 52,18,281/-- Contestation of quantum of redemption fine by the Appellant- Comparison with a previous order for similar goods and reduction of redemption fine- Consideration of market prices and reduction of redemption fine to Rs. 12 lakhs- Reduction of penalty from Rs. 3,00,000 to Rs. 2,00,000Analysis:The judgment deals with an appeal against Order-in-Original No. 37/99 related to the import of Garlic Super Quality Grade-A, where the goods were confiscated under Section 111(d) of the Customs Act due to a violation of the ITC Policy for not submitting a valid import license. A Redemption Fine of Rs. 49 lakhs was imposed on goods valued at Rs. 52,18,281. The Appellant contested the quantum of the redemption fine, arguing that it was excessively high, citing a previous order where a similar fine was significantly lower. The Tribunal considered the submissions and records, comparing the current case with the previous one, and found that the facts and market conditions were similar. Consequently, the Redemption Fine was reduced to Rs. 7 lakhs, following the precedent set in the earlier case. The penalty, however, was maintained at Rs. 2 lakhs, as the Commissioner had not altered it in the previous case.Furthermore, the Tribunal noted that since the goods in both cases were the same and imported on the same date at the same port, the margin of profit would also be similar. Therefore, the redemption fine was further reduced to Rs. 12 lakhs, based on the earlier decision's ratio. In line with the reduction in the redemption fine, the penalty was also decreased from Rs. 3,00,000 to Rs. 2,00,000 to ensure justice. The appeal was partially allowed, modifying the redemption fine and penalty while providing consequential relief as per the law.