CESTAT Reduces Excessive Redemption fine Imposed for Confiscation of Goods on ground of 100% Examination of Imported Goods [Read Order]

The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) reduced the excessive redemption fine and penalty imposed for confiscation of goods on the ground of 100% examination of imported goods. 

Kamachi Steels Ltd, the appellant assessee imported goods viz. steel scrap and the Pre-shipment Inspection Certificate submitted was issued by the Branch office of the Inspection Agency and the original authority imposed penalty and redemption fine for confiscation of goods. 

The assessee appealed against the order passed by the adjudicating authority for imposing excessive redemption fines and penalties. 

A.Mudimannan, the counsel for the assessee contended that the goods have been subjected to 100% examination and there are no remnants of arms/ammunitions or any such banned items. 

Further submitted that the assessee has produced a certificate and even after examination of the goods and there was no report of hazardous goods contained in the consignment, the imposition of such huge redemption fine and penalty was unreasonable and unfounded. 

Ananda Lakshmi Ganeshram, the counsel for the department relied on the decisions made by the lower authorities and contended that it was revealed that the pre-shipment inspection (PSI )certificate produced by the importer was issued by a branch office which was not enlisted in Appendix. 

Also stated that the imposition of redemption fine and penalty by the original authority was legal and proper and liable to be sustained. 

The Bench observed that goods had been subjected to 100% inspection and that the non-compliance with the requirement of production of PSI certificate would be only a procedural infraction and would not amount to the improper import of goods. 

The two-member bench comprising Sulekha Beevi (Judicial) and Vasa Seshagiri Rao (Technical) reduced the excessive redemption fine and penalty imposed by the original authority to the assessee. 

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