Redemption fine of 10% and penalty of 5% of value of imported goods is appropriate for imports violating Exim Policy Provisions: CESTAT [Read Order]

Redemption fine - penalty - imported goods - Exim Policy - CESTAT - Customs - Excise - Service Tax - imports - fine - value of imported goods - taxscan

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), observed that redemption fine of 10% and penalty of 5% of value of imported goods is appropriate for imports violating Exim Policy Provisions.

The Respondent, M/s. Ojas International, imported old and used worn clothing and two bills of entry were filed covering the two consignments of the importer. At the time of original assessment, the declared value of the imported goods was enhanced from CIF price of US $ 1.10 per kg. to US $ 1.316 per kg.

The original adjudicating authority ordered confiscation of the imported goods for violation of Import Trade Control restrictions and the goods were confiscated under Section 111(d) of the Customs Act, 1962 and also imposed redemption fine under Section 125 of the Act at 30% and personal penalty under section 112 (a) of the Act at 10.3%.

The order passed by the original adjudicating authority was challenged before the Commissioner (Appeals) by the importer. The First Appellate Authority, by passing the impugned order, upheld the order of confiscation and enhancement of value.

However, it reduced the redemption fine and penalty imposed to 10% and 5% respectively. Revenue has challenged this order by filing the present Appeals with the prayer that the order of the Commissioner (Appeals) reducing redemption fine and personal penalty, merits review.

M.P.Toppo, Authorized Representative appeared on behalf of the Revenue and submitted that the redemption fine and personal penalty merits to be increased in view of the fact that the respondent is a frequent importer of worn and used garments in violation of ITC Regulations.

The Counsel also submitted that a high amount of redemption fine and penalty will act as a deterrent for such imports by such unscrupulous persons.

The Tribunal of PK Choudhary, Judicial Member observed that “Redemption fine of 10% and penalty of 5% of the value of the imported goods, would be appropriate in case of imports violating Exim Policy Provisions. I find no reason to interfere with the findings of the Commissioner (Appeals) on the basis of such decision.”

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