SREE AMBAL EXPO INC. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THIS appeal arises from Order -in -original No. 84/2002, dated 22 -5 -2002 by which the unit price of garlic imported in mesh bags was enhanced to US 450 PMT based on the contemporary import price as against the declared unit price at US 445 CIF PMT, Chennai. The appellant are not challenging the enhancement of the value but they contend that the average price as prevailed during the contemporary period ought to have been take to arrive at the margin of profit to enable the authority to fix the redemption fine. The value adopted for the entire consignment of 607 MTs of garlic is Rs. 1/33,11/282/ - and of which a fine of Rs. 20 lakhs has been imposed under Section 125 of Customs Act on the ground that the importation has been done without license and the Commissioner has taken into consideration the previous offence committed by the appellant also. A penalty of Rs. 10 lakhs has also been imposed under Section 112(a) of the Customs Act.

(2.) WE have heard Shri A.K. Jeyaraj, Adv. for the appellant and Shri G.S. Menon, SDK for the respondent.

(3.) LD . Counsel relied on the prevailing price during the period as reflected from the Economic Times, Mumbai. He filed work sheet in terms of the price for respective days. It is his contention that the average price should have been worked out to adopt the price or in terms of the work sheet. He contended that if the price at which the department has adopted is worked out then there is a loss of 11.54% and there is no margin of profit. It is his contention that if the price is adopted at average price worked out by him in terms of the work sheet presented to the Tribunal the margin of profit would be only 2.43% and redemption fine would be Rs. 3.23 lakhs and penalty would be only Rs. 35,000/ -. In support of his plea he has relied on the Tribunal's ruling rendered in the case Shankar Trading Co. v. CC as reported in 1999 (106) E.L.T. 456 and that of Final Order No. 15/2002 dated 2341 -2002 rendered in the case of Murali Enterprises v. CC, Chennai [2003 (151) E.L.T. 352 (Tri.)] wherein direction was given to the authorities to adopt average price and the redemption fine and penalty has been accordingly reduced.