KAPSONS INDUSTRIES LTD. Vs. COMMISSIONER OF CUSTOMS (EP)

JUDGEMENT

(1.) The impugned adjudication order has been passed pursuant to an order of remand passed by this Tribunal. The direction contained in that impugned order was that redemption fine should be re -fixed taking into account the market price of the goods as well as the legal position.

(2.) In the remand proceedings, the Commissioner has reduced the redemption fine from Rs. 10 Lakhs to Rs. 7.25 Lakhs. The contention of the appellant in the present appeal is that the redemption fine fixed is very excessive as it is very much higher than the margin of profit involved. According to the appellant, when the landed price of the consignment is compared with the price of the domestic manufacturers, the profit would come to only Rs. 80,000/ -. This submission is made based on the price date furnished by Steel Authority of India. It is also the contention of the appellant that the goods had been ordered and LC opened on 1 -12 -1998 i.e. well before the issue of Floor Price Notification by DGFT on 11 -12 -1998. When the appellant renewed the LC on 12 -12 -1998 it was not aware that on the immediately preceding day to the Notification floor price notification had been issued and licence was required for imports below the floor price.

(3.) The learned DR has submitted that the Commissioner has rightly imposed the redemption fine since the import price was not above the market price minus customs duty.