AISWARYA ENTERPRISES Vs. COMMISSIONER OF C. EX., HYDERABAD

JUDGEMENT

(1.) THE appellants imported 105 pieces of used photocopiers and cleared them under Bill of Entry No. 701308 dated 5 -3 -2007. Adjudicating the allegations of import of the consignment without requisite licence, the original authority confiscated the consignment under Section 111(d) and (l) of the Customs Act, 1962 (the Act) and offered an option to the importer to redeem the goods on payment of fine of Rs. 3,10,000/ -. He also imposed penalty of Rs. 90,000/ - under Section 112 (a) of the Act. Vide the impugned order, the Commissioner (Appeals) found that the original authority had imposed a redemption fine equal to 31% of value of the photocopiers and sustained the order of the original authority. In the appeal before the Tribunal, the appellants have sought reduction of fine and penalty on the ground that the Tribunal has been consistently maintaining 15% of the value as appropriate redemption fine and that 5% of the value as appropriate penalty in similar cases. They have cited the following decisions of the Tribunal in support of this claim : -

(2.) I have heard both sides.

(3.) I find that the lower authorities have ordered a redemption fine of 31% of value of the goods after ascertaining the same to be the margin of profit the importer would have been earned on sale of photocopiers imported in contravention of EXIM Policy in force. I find that the Honble Delhi High Court in the case of Jain Exports Pvt. Ltd., New Delhi and Another v. Union of India and Others [1987 (29) E.L.T. 753 (Del.)] held that an importer should not be allowed to get away with a bonanza of profit on illegal import. In the circumstances, I find that the impugned order imposing 31% of value of the goods as redemption fine is in accordance with law. As regards the penalty imposed at 10% of value of the goods, I find that the same is appropriate also with reference to the decisions cited by the appellants. In the decisions cited, approximately 5% penalty was imposed in each case where the fine was 15% of value of the goods. In the instant case, 10% of the value is thus appropriate. The appeal is rejected. (Pronounced and dictated in the open court)