2004 (6) TMI 508

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....efly first. The Bill of Entry No. 72993 dated 28-3-2002 was filed by the appellant before Nhava Sheva Customs for the clearance of a consignment declared as "aluminium scrap telic". The declared value was Rs. 3.09 lakhs. Based on information that the goods have been misdeclared, DRI officers intercepted and examined the cargo. The examination revealed that tin ingots and cobalt worth more than Rs. 26.5 lakhs had been concealed in the aluminium scrap consignment. The authorities also intercepted and examined another consignment under import by the appellant which was awaiting clearance. The examination of this consignment (container No. EMSU 2493215) revealed that along with the aluminium scrap, there was precious cargo worth about Rs. 60.28....

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....e invoice dated 3rd January, 2003 of M/s. Setronics Marketing to M/s. Max Enterprises Pvt. Ltd. With regard to redemption fine, the contention of the appellant is that it is too high and is far in excess of the margin of profit. Learned Counsel submits that the method of valuation, and quantum of redemption fine are against settled law. 4. Learned SDR has pointed out that this is   a case involving massive fraud on customs revenue. As against the declared value of over Rs. 16 lakhs the consignments were found to contain concealed materials worth about Rs. 84.5 lakhs also. The learned SDR has, therefore, emphasised that this is a case of deliberate fraud of smuggling precious items in the guise of aluminium scrap. Learned S....

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....hart showing the market value of the imported goods (based on commodity price reports in newspaper/journals) during the period of import at around Rs. 1.21 crores. It is the learned SDR's submission that since the duty on the consignment worked out to less than Rs. 30 lakhs, under law, the Commissioner could have imposed a redemption fine not exceeding Rs. 90 lakhs [the market value (Rs. 1.21 crores) - duty (Rs. 30 lakhs) = Rs. 91 lakhs.] The learned SDR has also pointed out that considerations like eliminating the margin of profit cannot be the guiding principle in a case of smuggling. The learned SDR has further submitted that adjudication order must be upheld in its totality since the penalty imposed on the appellant is small (Rs. 8.4 la....