TaxTMI 
TaxTMI 
1993 (7) TMI 89
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.... a profit of at least Rs. 10/- per kg. which is required to be mopped up to the maximum extent prior to release of goods". 2. He therefore imposed a redemption fine of Rs. 6,50,000/- and Rs. 5,80,000/- against B/E Nos. 497 and 498 dated 12-5-1993 respectively. The first consignment was cleared on that basis. The second consignment was also adjudicated along with the first consignment. It was adjudicated on 15th of June, 1993 by the Additional Collector of Customs. The Additional Collector of Customs in his order dated 15th of June, 1993 observed as follows :- "I have carefully gone through the records of the case. The goods require an import licence. Since the importer has failed to produce the same, the goods become liable for confiscation under Section 111(d) of Customs Act, 1962 and the importer becomes liable for penalty under Section 112 of the said Act, I, therefore, impose a redemption fine of Rs. 8,00,000/- for each of the five bills of entry and impose a penalty of Rs. 80,000/- on each of the five consignments. If the importer desires to clear the goods he should do so within 15 days of the receipt of the order on payment of duties and fine and penalties as impose....
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....fine from 100% to 250% of the CIF value of the goods", be allowed. The file contains the following noting also : "As far as interim stay order is concerned, the Collector (A) may like to pass an ex parte order of stay against the said adjudication of Additional Collector. The said order, on merits, may be quashed/set aside/upheld after hearing the appeal". On that note the Collector (Appeals) made an order on 23rd June, 1993 as under : "As prayed stay is granted to the operation of the order passed by the Additional Collector (Customs) with immediate effect". The order which was communicated to the appellant is as follows :- "The Additional Collector of Customs, Appraising, Customs House, Calcutta, has filed an appeal under Sec. 129D(4) of the Customs Act, 1962 against the adjudication order No. 33/93, dated 15-6-1993 seeking enhancement of quantum of redemption fine imposed by that impugned order, taking into consideration the criteria laid down under Section 125(1) ibid. The appellant has also submitted a petition in which grant of stay upon the operation of the impugned order pending disposal of the appeal, is sought for. After careful considerations of the case, I f....
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....ion of such points arising out of the decision or order as may be specified by the Board in its order. (2) The Collector of Customs may, of his own motion, call for and examine the record of any proceeding in which an adjudicating authority subordinate to him has passed any decision or order under this Act for the purpose of satisfying himself as to the legality or propriety of any such decision or order and may by order, direct such authority to supply to the Collector (Appeals) for the determination of such points arising out of the decision or order as may be specified by the Collector of Customs in his order. (3) No order shall be made under sub-section (1) or sub-section (2) after the expiry of one year from the date of the decision or order of the adjudicating authority. (4) Where in pursuance of an order under sub-section (1) or sub-section (2), the adjudicating authority or any officer of customs authorised in this behalf by the Collector of Customs, makes an application to the Appellate Tribunal or the Collector (Appeals) within a period of three months from the date of communication of the order under sub-section (1) or sub-section (2) to the adjudicating authori....
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....oposition that in every case the maximum redemption fine has to be imposed. 12. It appears from the records that on the basis of certain allegations made by the South Indian Importers' Association an attempt was made to enhance the CIF price on the basis of the price prevailing on the date of adjudication. The Additional Collector in his order dated 15th June, 1993 has not given any method or mode of calculation of the redemption fine. He had fixed redemption fine by a rule of thumb, whereas the Collector of Customs in his order dated 21st May, 1993 has given the details of the calculation. The basic idea behind Section 125 in imposing redemption fine is to minimise the profit that an importer can make by the unauthorised import. The redemption fine is imposed to mop up the profit to the maximum extent possible. In finding out the price and the percentage of profit, all relevant matters have to be taken into account which in fact had been taken into account by the Collector of Customs in his order dated 21st May, 1993. It has not been disputed that on the date of the importation on 19th May, 1993 the retail price of the subject goods was Rs. 87/- per kg. But the Additional Colle....