SHETALA AGENCIES PVT. LTD. Vs. COMMISSIONER OF CUS.

JUDGEMENT

(1.) THE appellants filed a Bill of Entry dated 3 -3 -99 for clearance of 99 pieces of Olympus cameras of different models imported from Singapore. The value of the goods was declared as US 3425 C&F and, on this basis, the Bill of Entry was assessed to duty of Rs. 93,099/ -and the goods were cleared for home consumption. Subsequent investigations conducted by the Customs authorities resulted in the discovery of higher value for the goods and, accordingly, the value of the goods was enhanced to US 7000.50. The appellants accepted this enhancement and undertook to pay the differential duty along with fine and penalty. They requested for adjudication of the matter without SCN or personal hearing. They also paid an amount of Rs. 1,92,216/ - towards the demands. The Commissioner of Customs, relying on a price list which was recovered from the importer's premises, determined the assessable value of the goods under Rule 8 of the Customs Valuation Rules, 1988 and, accordingly, quantified the differential duty at Rs. 1,33,726/ -, which was demanded along with interest. This demand is not contested. The Commissioner also found misdeclaration of goods by the importer and, accordingly, he confiscated 10 cameras (which was available) with redemption fine of Rs. 27,000/ - and also imposed redemption fine of Rs. 3,30,000/ - in lieu of confiscation of the remaining cameras (not available for confiscation). The order of confiscation of the 10 cameras with redemption fine of Rs. 27,000/ - is not contested. However, appellants have challenged the fine of Rs. 3.30 lakhs imposed on them in lieu of the cameras which were not available.

(2.) LD . consultant for the appellants has submitted that, where the goods are not available for confiscation, they are not redeemable and consequently any redemption fine is not liable to be imposed. We have to accept this contention for want of successful contest. Accordingly, the fine of Rs. 3.30 lakhs is set aside. The Commissioner imposed a penalty of Rs. 1,33,726/ - on the importer under Section 114A of the Customs Act which has been challenged in this appeal. Ld. consultant has submitted that in the facts and circumstances of the case, any penalty equal to duty was not warranted. We have heard ld. SDR also on this aspect. Having regard to the circumstances of the case, we are of the view that the above penalty is harsh and we reduce the same to Rs. 25,000/ - (Rupees Twenty -five thousand only).

(3.) THE impugned order will stand modified to the aforesaid extent. The appeal is disposed of.