The Bangalore bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that used Digital Multifunction Printing and Copying Machines were released on payment of a redemption fine of 10% and a penalty of 5% of the enhanced value of the imported goods in absence of market value.
J J Graphics, the appellant assessee imported 244 units of used Multifunction machines and filed a Bill of Entry and the adjudicating authority ordered the confiscation of goods and imposed a redemption fine and penalty. Later the Commissioner (Appeals) held that the goods are not liable for absolute confiscation and remanded the matter by allowing redemption of goods on payment of the appropriate redemption fine.
The assessee appealed against the order passed by the Commissioner (Appeals) for upholding the penalty and redemption fine imposed by the original authority.
Maheswari Sugumaran, the counsel for the assessee contended that in the absence of any finding regarding the market value of the goods, in similar cases, the goods are being released subject to payment of a redemption fine of 10% and a penalty of 5% on the enhanced assessable value.
Further submitted that despite specific findings from various appellate forums, there was an undue delay of more than 06 years in releasing the goods, and the assessee also prays for issuing a direction for waiver of detention/demurrage charge.
Neeraj Kumar, the counsel for the department relied on the decisions made by the lower authorities and contended that though the order of absolute confiscation was found unsustainable, the matter was remanded to Lower Authorities on the ground that the economic advantage of import even in the absence of license mandated for restricted goods must be neutralized regarding the market price of the goods that are imported against such license.
The Bench observed that in the interest of justice since 6 years had already lapsed, the present appeal was partially allowed by reducing the redemption fine and penalty by 10% and 5% respectively of the enhanced value.
The two-member bench comprising P. A Augustian (Judicial) and Bhagya Devi (Technical) reduced the redemption fine to 10% of the enhanced value and penalty to 5% of the enhanced value and allowed the assessee to redeem the imported goods.
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