CC (PREV.) Vs. ROSE ENTERPRISES

JUDGEMENT

(1.) The Revenue has appealed against the order dated 31.01.2007 passed by the Commissioner (Appeals) to the extent that it has reduced the redemption fine of Rs. 2 lacs in lieu of confiscation as imposed by the adjudicating authority to Rs. 25,000/ - and the penalty of Rs. 1 lac to Rs. 10,000/ -.

(2.) THE facts are not in dispute. Both the authorities below have concurrently found that, the imported goods (20936 kgs. of old and used worm clothings) were declared to be of the value of Rs. 3,11,404.80, but their assessable value was Rs. 5,96,676/ -. The said assessable value was acceptable to the importer. It has also not been contested that the goods were imported without the required licence/permission. The import of the goods was not allowed without the required licence/permission. The goods were imported in contravention of the Foreign Trade Policy 2004 -09. The importer had accepted the assessable value proposed by the appraising Officer. The authorities have, therefore, rightly held that, the goods were liable to be confiscated and penalty was required to be imposed.

(3.) THE importer had pleaded for a lenient view despite its being in the knowledge of the fact that the goods imported were restricted under the policy and could not have been imported without licence/permission. The adjudicating authority observing that, the rationale of imposing redemption fine and penalty was to penalise the importer to the extent that not only the margin of profit is reduced to almost negligible, but also to dissuade the importer from making future imports of such goods, the import of which was restricted, ordered confiscation of the imported goods valued at Rs. 5,96,676/ - under Section 111(d) of the Customs Act, 1962, giving an option to the importer to release the goods on payment of fine of Rs. 2 lacs. Penalty of Rs. 1 lac was imposed on the importer under Section 112 of the Act.