2008 (4) TMI 310

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....ers have imported old used photocopiers and filed bills of entry for clearance of the goods under OGL. The value of the goods as invoiced by the Overseas Supplier was declared in bills of entry. These imports were made subsequent to the amendment of Para 2.17 of the Foreign Trade Policy by which the import of secondhand photocopiers would be allowed only against a specific licence. After presentation of the bills of entry by the first respondent-importers, the goods were subjected to examination by Officers of Customs, as also by local chartered engineer. The Chartered Engineer appraised the value of the goods to be higher than what has been declared by the importer. On the basis of the result of investigation, the Department issued show ca....

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....oms, Excise and Service Tax Appellate Tribunal was justified in reducing the redemption fine imposed under Section 125 of the Customs Act, 1962 without giving any reasons, when the adjudicating authority imposes deterrent fine in order to stop the imports in violation of the Foreign Trade Policy? (ii) Whether the Customs, Excise and Service Tax Appellate Tribunal was justified in reducing the penalty imposed under Section 112(a) of the Customs Act, 1962 without giving any reasons, when the adjudicating authority imposes deterrent penalty in order to stop the imports in violation of the Foreign Trade Policy? 5. Learned counsel appearing for the appellants referring the notification of the Central Board of Excise and Customs Circular No. 78....

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....ossession or custody such goods have been seized, an option to pay in lieu of confiscation such fine as the said officer thinks fit: Provided that, without prejudice to the provisions of the proviso to sub-section (2) of section 115, such fine shall not exceed the market price of the goods confiscated, less in the case of imported goods the duty chargeable thereon. (2) Where any fine in lieu of confiscation of goads is imposed under sub-section (1), the owner of such goods or the person referred to in sub-section (1), shall, in addition, be liable to any duty and charges, payable in respect of such goods." 8. Section 112 of the Customs Act, 1962, which authorises imposition of penalty for improper importation of goods, reads as follows: ....

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....nalty not exceeding the value of the goods or the difference between the declared value and the value thereof or five thousand rupees, whichever is the highest; (v) in the case of goods falling both under clauses (ii) and (iii), to a penalty not exceeding the duty sought to be evaded on such goods or the difference between the declared value and the value thereof or five thousand rupees, whichever is the highest." (bold supplied) 9. From the reading of the above provisions, it is clear that the statutory requirement is that the imposition of redemption fine shall not exceed the market price of the goods confiscated, less in the case of imported goods, the duty chargeable thereon. The language employed "shall not exceed" indicates that th....