BALAJI & CO. Vs. CC, CHENNAI

JUDGEMENT

(1.) This appeal challenges Order -in -Original passed by Commissioner of Customs, Madras by Order No.57/96 dated 30.10.95 and despatched on 7.10.96 confirming confiscation of poppy weighing 1,12,000 Kgs. valued at Rs.15,26,452/ - CIF under Section 111 (d) of Customs Act read with Section 3 (3) of Foreign Trade (Development and Regulation) Act 1992.However, he had given an option to redeem the same on payment of a fine of Rs.15,00,000/ - which is almost 100% of the value. Penalty of Rs.50,000/ - has been imposed under Section 112 (a)of the Customs Act 1962.

(2.) Ld.Consultant submits that poppy seeds were not consumer items but were bulk drugs as it was being used for manufacture of Ayurvedic drugs. However, this issue had been sealed by Tribunal against the parties and it has been held to be consumer item requiring licence in terms of the Tribunal judgment rendered in Janata Ayurdvedh Bhavan Vs. CC as reported in 1990 (48) ELT 425. He submits that the only plead they are raising is with regard go the imposition of 100% Redemption Fine and Penalty in the matter. He seeks for total waiver of both the amounts.

(3.) On the other hand, Ld.DR points out that the issue pertaining to imposition of Redemption Fine and Penalty had been considered by Larger Bench of the tribunal in Harpeet International Vs. CCE Amritsar as reported in 2000 (120) ELT 529 headed by Hon'ble President. He points out that the Larger Bench has held that imposition of 85% of R.F. of the CIF value is justified under Section 125.The penalty has been fixed at 25% of the value. He submits that in the present case, the penalty fixed is only Rs.50,000/ - which is far less than 25% of the CIF value. He submits that the prayer of the Consultant for total waiver of RF and Penalty is not justified and not in accordance with the ruling laid down by the Larger Bench cited.