SUNRISE IMPEX Vs. COMMISSIONER OF CUSTOMS, COCHIN

JUDGEMENT

(1.) THESE appeals are at the instance of importers of old synthetic rags. They claimed clearance without licence under Para 5.3(a)(iv) of Handbook of Procedures, Vol. 1 to Exim Policy 1997 -2002. The above provision permitted import of Synthetic Rags/Woollen Rags/Shoddy Wool without licence subject to the condition that the mutilation conforms to the requirements specified by the Customs Authorities. On examination of the goods, it was found that the mutilation did not conform to the norms specified through the Public Notice No. 86/94 issued by the Customs House. The importers were directed to mutilate the goods further as per Public Notice 86/94. Since they refused to do so the Customs Authorities proceeded to confiscate the goods under Section 111(d) of the Customs Act, 1962 read with Section 3 of Foreign Trade (Development & Regulation) Act, 1992. It was also proposed to impose penalty under Section 112(a) of the Customs Act. Show cause notices were issued. Ultimately after protracted proceedings before the High Court and Supreme Court the adjudicating authority passed the impugned orders dated 6 -8 -1999 and 4 -9 -2000. The goods were ordered to be confiscated and the importers were granted an option to redeem the goods on payment of fine after mutilation of the goods by the importer at his own cost in terms of Public Notice No. 86/94. Penalty was also imposed under Section 112(a) of the Customs Act.

(2.) IN these appeals challenging the adjudication order several contentions were taken. But, at the time of hearing learned Counsel appearing on behalf of the appellants submitted that the appellants are restricting their contentions to those directed against the quantum of redemption fine and penalty. In view of the above submission, we are not going into the other contentions raised in these appeals. The value of the goods ordered to be confiscated, quantum of redemption fine and penalty imposed in each case are given below in the form of a chart. <FRM>JUDGEMENT_104_LAWS(CE)1_2003.htm</FRM>

(3.) IN another order dated 25 -4 -2001 passed by the Additional Commissioner of Customs, Cochin where the value of similar offending goods was about Rs. 6.1 Lakhs the redemption fine imposed was Rs. 65,000/ - and penalty Rs. 13,000/ -. The same officer had passed another order dated 25 -4 -2001 where value of the similar offending goods was assessed at Rs. 4.55 Lakhs. Redemption fine imposed was Rs. 50,000/ - and penalty Rs. 10,000/ -. In the light of the above, the learned Counsel for the appellant submits that the quantum of redemption fine and penalty should be reduced in these appeals.