LAWS(CE)-2005-12-170

CANAAN PRESS (P) LTD. AND C. Vs. CC

Decided On December 14, 2005
Canaan Press (P) Ltd. And C. Appellant
V/S
Cc Respondents

JUDGEMENT

(1.) M /s. Canaan Press Pvt. Ltd. imported three consignments of second -hand machinery and filed the following Bills of Entry:

(2.) AFTER hearing both sides and considering their submissions, I find that there is no dispute of the fact that 15 machines [7 covered by the first Bill of Entry, 3 covered by the second and 5 covered by the third] were disposed of by the company before expiry of the period of five years stipulated for actual user by the importer, under the relevant EXIM Policy. Hence, in respect of these machines, the importer committed breach of the EXIM Policy provisions, thereby attracting Section 111 [rendering the goods liable to confiscation] and Section 112 [rendering the importer liable to be penalized]. In respect of the 12 machines covered by the Bill of Entry dated 15.4.99, it is not in dispute that the goods were shipped on 10.4.1999. On and from 1.4.99, import of second -hand machinery required specific licence as per the EXIM Policy as amended. Admittedly, these 12 machines were imported without any such licence. Hence these goods also attracted Section 111 and consequently the importer attracted Section 112. In the result, the appellants do not have any sustainable case against the confiscation and penalty.

(3.) LEARNED Counsel submitted that the quanta of redemption fines and penalties imposed by the original authority were excessive and that, in the matter of determining the amounts of fines, the authority did not follow the normal norms. In this connection, it was pointed out that, in a similar case of importation of second -hand machinery, only less than 10% of the assessable value of the goods was imposed as redemption fine by the Chief Commissioner of Customs, Chennai vide Order -in -Original No. 21/2001 dated 31.1.2001. In the said case, the assessable value of the imported machines which were confiscated under Section 111(d) and (o) was about Rs. 2.94 crores and the quantum of fine imposed in lieu of confiscation was Rs. 25.00 lakhs. Learned Counsel further submitted that the Chief Commissioner's order was upheld by this Tribunal. However, he did not produce any order of the Tribunal in this context. Nevertheless, it was argued, on the basis of the Chief Commissioner's order, that the normal norm for the department in the matter of quantifying redemption fine in lieu of confiscation of any imported goods was 10% of the assessable value of the goods. As regards penalties, learned Counsel submitted that the authorities below ought to have imposed lesser penalties in the facts and circumstances of the case.