Redemption Fine should be Sufficient to Discourage Importer from Repeating Offence: CESTAT [Read Order]

The Ahmedabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that the redemption fine should be sufficient to discourage the importer from repeating the offences. 

Gamesa Renewable Pvt Ltd, the respondent-assessee was engaged in the import of “Prime hot rolled steel plates shot-blasted/ coated with Zinc Silicate” and the subject goods were subjected to Minimum Import Price (MIP). 

The revenue appealed against the order passed by the Commissioner (Appeals) for reducing the redemption fine imposed on confiscation of goods and penalty under Section 112(a) of the Customs Act,1962. 

Himanshu P Shrimali, the counsel for the revenue contended that the reduction of redemption fine and penalty are not elaborated in the order of the Commissioner (Appeals) who has merely stated that looking at the gravity of the offense and the earlier order of the Tribunal the redemption fine and penalty had been revised downwards. 

Also submitted that it could not have been done after having observed that, the goods were liable to confiscation and that the respondents had violated the provisions of the imported policy deliberately. 

Manish Jain, the counsel for the assessee contended that the goods were not prohibited but only restricted and the reduction of redemption fine and penalty was as per the law and liable to be sustained. 

The two-member bench comprising Somesh Arora (Judicial) and Raju (Technical) held that for determination of the quantum of the redemption fine was that it should discourage the importer from repeating the offense and the redemption fine should be sufficient to discourage people from violating the law repeatedly. 

To Read the full text of the Order CLICK HERE

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