1997 (9) TMI 552

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..... 40,00,000/- and imposing a penalty on the importer of Rs. 10,00,000/- under Section 111(d) of the Customs Act. Advocate for the appellant say that he does not question the liability to confiscation of the engines in question on the ground that they are second-hand engines and that an import licence, which was required for importation was not produced. He says however, the quantum of redemption fine and the penalty determined by the Commissioner are excessive. 2. The challenge to the redemption fine is on the ground that it is excessive and that there is no basis indicated in the order of the Commissioner. The Advocate contends that the Commissioner has not indicated any report of market enquiry on the basis of which he has arrived....

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....nd is reasonable. 5. These arguments were advanced when the matter was heard on 22-7-1997 we had asked the departmental representative whether the order of the Commissioner dated 14-5-1997 which was cited by the appellant was accepted by the Department, or whether the department had gone in appeal against that. Some time had been given for that purpose. Departmental representative stated that the order of the Commissioner has been accepted as legal and proper. He also produced a letter to this effect from the office of the Chief Commissioner. 5. Confiscation of the engines has not been questioned, and the only issue before us is determination of redemption fine and the penalty imposed. The Commissioner has not given details,....

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....nimum average works out about 110%. The order impugned in this appeal was passed on 24th July, 1997 month and half after the issue of earlier order of the Commissioner. The value of the engines in the order passed in May ranges as accepted or enhanced by the Commissioner ranges between Rs. 7531/- minimum and Rs. 10,138/- maximum. The value declared by the appellant and accepted by the Commissioner works out to Rs. 9,197/- per engine. This corresponds to the average value of the consignments which was subject matter of the earlier adjudication. 5. Once the department has accepted the earlier order as legal and correct it would follow that the margin of profit determined in that order has also been accepted. There is nothing to show t....