OMEX INTERNATIONAL Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THE Commissioner of Customs has enhanced the value of 96 old/used photocopiers imported by the appellants to Rs. 21,96,035/ - under Rule 8 of the Customs (Valuation) Rules, 1988. Having found that the goods were imported without specific licence, he ordered confiscation thereof under Section 111(d) of the Customs Act, 1962, with option to redeem the goods on payment of fine of Rs. 5 lakhs. He has also imposed penalty under Section 112(a) of the Act. In the present application for waiver of pre -deposit and stay of recovery, Id. Counsel submits that the enhancement of value was made on the basis of local Chartered Engineer's Certificate, which, according to the Counsel, is not sustainable under Rule 8 ibid. As regards the redemption fine and penalty, the grievance is that the same Commissioner imposed lower fine and penalty on the same party in relation to another consignment of used photocopiers. However, Id. Counsel has not produced any such order of the Commissioner. We have heard Id. SDR also.

(2.) AFTER examining the records and considering their submissions, we find that the goods, valued at over Rs. 21 lakhs, are under the department's custody and, therefore, no further safeguard would be required at this stage for the Revenue. The valuation dispute and the question as to quanta of fine and penalty will be examined in due course of time. For the present, we are inclined to grant waiver of pre -deposit and stay of recovery in respect of the duty and penalty amounts. It is ordered accordingly, At this stage, it is submitted by the Id. Counsel that, even if the appellant chooses to redeem the goods by paying fine and duty during the pendency of the appeal, the department might not allow the same unless penalty also is deposited. On this aspect, we have heard Id. SDR as well. From the submissions, it appears to us that payment of fine and penally is likely to be insisted upon at the time of provisional redemption of confiscated goods. However, as personal penalty imposed on the importer under Section 112 of the Customs Act is not directly relatable to the goods as such, it will not be proper for the department to insist on payment of penalty by the importer intending to redeem this goods. Only duty and fine are directly relatable to the goods. Hence, if the appellants intend to redeem the goods provisionally, pending appeal, they will be at liberty to do so on payment of the duty and fine determined by the Commissioner. The second application, which is for early disposal of the appeal is sought to be withdrawn. This application is dismissed as withdrawn.