1998 (7) TMI 253

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....tc. as follows :-   By Order-in-Original By Order-in-Appeal R.F. Rs. 11,35,430/- Rs. 9,11,250/- Penalty Rs. 2,32,670/- Rs. 1,00,000/- In imposing these, ld. CC (A) has fixed market price at Rs. 100/- per kg. and imposed 75% Redemption Fine on market value (emphasis supplied) and not CIF value. 2. Appellants submit that this is arbitrary and unjust because :- (a) Now goods are under OGL and prices are as low as Rs. 80/- a kg; (b) R.F. should be based on Margin of Profit (MOP) which in turn should follow the well established formula : (c) That landed cost should include demurrage incurred on this live Bill of Entry due to undue delay of 10 months in passing the impugned order ....

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....but then proceeds to impose Redemption Fine of 75% on market price. In effect therefore goods of CIF value of Rs. 4.65 lakhs approximately are offered for redemption on an R.F. of Rs. 9.11 lakhs, i.e. at 200% of CIF value. This, we strongly feel, is neither logically nor precedentially correct. 6. Therefore, two options are open before us. One is to remand the matter for de novo consideration with suitable directions on the issue. However, we take note that this is a live Bill of Entry and the first level appellate procedure has already taken over 10 months. In fact that is why, this Tribunal allowed appellant's prayer for early hearing vide Miscellaneous Order Nos. 307 & 308/98, dated 4-6-1998. Meanwhile, goods continue to incur he....

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....ced from Rs. 1,00,000/- to Rs. 35,000/- only. 9. The impugned Order-in-Appeal is modified to this extent and the appeal succeeds partially as per above orders. ANNEXURE - I WORK SHEET AS PER THE APPELLANT Appeal No. M/s. Shanker Trading Co.,   C.I.F.Value   = 4,65,340.00     Duty at 32%   = 1,48,908.80 = 1,48,909.00   Other Expenses (as per Department Rs. 2/- per kg) for 12,150 kgs.       = 24,300.00     Landed Cost   = C.I.F. + Duty + Expenses       = 4,65,340.00           1,48,909.00         ....