2002 (2) TMI 152

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ted for import. 2. The appellants opened in favour of their foreign supplier, a Letter of Credit [LC] with their bank on 1-12-98, which was valid upto 15-12-98. Pursuant to a request from the foreign supplier for extending the validity period of the LC, the appellants took necessary steps with their bankers and got the validity period extended upto 31-12-98. Subsequently, the goods (electrical steel sheets) were shipped from Russia to the appellants in India under Bill of Lading and Invoice, dated 28-12-98. The appellants filed Bill of Entry for clearance of the goods with Indian Customs authorities on 5-2-99. As per the import documents, a total quantity of 105.26 MTs of CRNGO electrical steel sheets in coil of Grade 2212 had to be ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ption fine determined by the Commissioner is not in accordance with the proviso to sub-section (1) of Section 125 of the Customs Act. He submits that, according to the said proviso, any fine for redemption in lieu of confiscation of imported goods shall not exceed the market price of the goods less the duty chargeable thereon. Ld. Counsel submits that, in the instant case, no market enquiry was conducted by, or on behalf of, the adjudicating authority to determine the Indian market price of the goods. He submits that the minimum CIF value fixed by the DGFT in the notification for the purpose of free importability of the goods was no criterion or basis for determining the market price of the goods for purposes of redemption fine under the pr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tsoever for determining the market price appears to have been conducted by the Customs authorities. The Commissioner has apparently gone by the minimum CIF value fixed for free importability of CRNGO electrical sheets by the DGFT in its Notification No. 35, dated 11-12-98, for the purpose of assessing the market value of the goods in question. This cannot be sustained inasmuch as the purpose for which the notification was issued by the DGFT is extraneous to the purport of the proviso to Section 125(1) of the Act. The DGFT fixed a minimum CIF value of US $ 763 per MT as a benchmark for free importability of CRNGO electrical steel sheets. According to the notification, such goods of a CIF value below the said minimum value fixed by the DGFT c....