LAWS(MAD)-2000-11-47

RAJNIKANT BROTHERS Vs. COLLECTOR OF CUSTOMS MADRAS

Decided On November 14, 2000
RAJNIKANT BROTHERS Appellant
V/S
COLLECTOR OF CUSTOMS, MADRAS Respondents

JUDGEMENT

(1.) THE assessee's grievance is with regard to the quantum [of] redemption fine which has been determined by the Tribunal at 150% of the invoice value. THE assessee complains that no basis has been set out in the order for determining the quantum of fine at that level. THE Collector who had imposed the redemption fine of Rs. 1, 20, 00, 000/- with respect to goods - almond in shells - of the value of Rs. 49.89 lakhs as per the invoice at the time of import in January, 1986, had relied upon the purchase code by the officials in one of the stores at Delhi in the month of May, 1986 of shelled almonds which had been purchased at the rate of Rs. 200/- per hundred grams.

(2.) THE amount so fixed by the Commissioner was reduced by the Tribunal on the ground that in its view that sum was excessive. Among the factors noted by the Tribunal was the fact that at the time of import there was ambiguity as to whether the importation of dry fruits by export houses claiming the benefit of additional licence under the terms of the Import Policy of 1978-79 was permissible. During the year of import the importation of such goods was permissible only by the dry fruits merchants and not by persons like the petitioner who is a diamond merchant. THE Tribunal also took note of the fact that the petitioner had to store the goods for a long period of time. However, the Tribunal did not advert to the basis on which the Collector had made his determination, namely the purchase of 100 grams of shelled almonds by his officials from the market in the month of May, 1986 and as to how that price could form an acceptable basis for fixing the value of the goods imported in January, 1986, which were almond in shells and not shelled almonds.

(3.) THAT the market value for the purpose of Section 125 of the Customs Act is the value as on the date of import, is evident from the fact that the amount of duty leviable at the time of import is with reference to the value as at the time of importation, as provided in Section 14 which refers to the price at that time in the place of importation or exportation in the course of international trade. Redemption fine is intended to cape up the profit that the person who has imported the goods in violation of the law is likely to make any reason of the import, as the goods are being allowed to be retained by him.