The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) directed re-adjudication for reducing the redemption fine imposed on the confiscation of prime hot rolled steel plates without considering the Minimum Import Price (MIP).
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 in terms of Section 125 of the Customs Act, the redemption fine cannot exceed the market price of the goods confiscated less the amount of duty chargeable thereon, to neutralize any benefit that may accrue to the importer from such illegal act of importation of impugned goods.
Manish Jain, the counsel for the assessee contended that the assessee did not violate the Import Policy and that the reduction done was as per the law and liable to be sustained.
The Bench observed that the assessee had done the sixth violation of the policy and the severity of the violation was also gradually increasing and the redemption fine imposed earlier had not deterred the assessee from violating the policy.
The two-member bench comprising Somesh Arora (Judicial) and Raju (Technical) directed re-adjudication to the original adjudicating authority to go into the facts of the case and come up with proper quantification of fine and penalty which was adequate to deter the assessee from repeating the offense.
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