C.C., BANGALORE Vs. ABHYADHAMA HUMAN DEVELOPMENT CENTRE

JUDGEMENT

(1.) THIS is a Revenue appeal on a short ground against the Order -in -Appeal No. 33/2004, dated 12 -3 -2004. The importer had imported 270 Nos. of used computers in violation of Para 2.17 of EXIM Policy 2002 -2007. The importer is a registered institution engaged in charitable activities including education of poor children. They had stated before the Commissioner (A) that they were under the impression that the used computers can be imported without license. They were engaged in social service for the past 26 years and had been regularly importing consignment of used clothes for children. In view of the philanthropic nature of the activities they pleaded for setting aside the redemption fine imposed in the Order -in -Original. The Commissioner after due consideration and on finding that the organization to be a charitable one doing free work for poor children set aside the redemption fine in terms of Section 125 of the Customs Act and reduced the penalty. The Revenue is aggrieved with the setting aside of the redemption fine and contend that in terms of Section 125 of the Customs Act redemption fine is mandatory and is required to be imposed once the goods are found to be confiscable.

(2.) WE have heard both sides in the matter.

(3.) ON our careful consideration, we notice that the Respondents have not challenged the confiscability of the goods and the power of the authority to impose the redemption fine. However, they pleaded for a leniency in view of the fact that they were charitable institution and already burdened with severe financial crunch and difficulties to carry on the charitable work. On a careful consideration, we uphold the Revenues contention that redemption fine is imposable in the present case as there was a clear violation of Para 2.17 of EXIM Policy 2002 -2007. The learned Counsel relied on the judgment of Bio -Chemical Pharmaceuticals Limited v. CC, Mumbai reported in 2005 (186) E.L.T. 564, wherein the redemption fine has been reduced to a token of 1% of CIF value, since there was no margin of profit in the matter. He has also relied on Dredging and Contracting v. CC, Kandla reported in 2005 (183) E.L.T. 29 (Tri. -Mumbai) wherein redemption fine has been reduced to Rs. 1,000/ - for the facts and circumstances of the case. In the case of CC, Mumbai v. Auto World reported in 2000 (122) E.L.T. 500 (T), the Tribunal has held that quantum of fine should be fixed on the totality of all the facts and circumstances of each case and did not accept the Revenues plea for enhancement of the redemption fine. In the case of Davinder Singh v. CC, Mumbai reported in 2006 (193) E.L.T. 359 (Tri. -Mumbai) the redemption fine has been reduced to Rs. 25,000/ -. Taking into consideration the factors enumerated and the ratio of the citations, we fix the redemption fine in the present case to Rs. 10,000/ - (Rupees Ten Thousand Only) only. The impugned order insofar as redemption fine is modified to this extent. The appeal is allowed in the above terms.