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2015 (10) TMI 496 - AT - CustomsValuation - Misdeclaration - Undervaluation - violation of the principles of natural justice - Held that:- Proprietor of the appellant having admitted to the valuation and having forgone the requirement of a show cause notice or personal hearing. It is pertinent to mention here that the said voluntary statement of the proprietor was never retracted and even during the proceedings before Commissioner (Appeals) the plea that the statement was taken under duress was not taken. - while the appellant's contentions about valuation and differential duty are totally untenable, we do observe that redemption fine of ₹ 2 Lacs has been imposed on the goods imported vide Bill of Entry No. 859681 on which the differential duty works out to only ₹ 13,103/- computed on the basis of undervaluation of 10%. As the redemption fine as a general principle has a nexus with the margin of profit and the goods were otherwise freely importable, we find the redemption fine to be excessive in the wake of the facts that the duty evaded due to undervaluation was only ₹ 13,103/-. We are of the view that given the level of undervaluation (just 10%) and the amount of duty sought to be evaded (Rs.13,103/-), redemption fine of ₹ 20,000/- is reasonable. However as penalty has been imposed in view of the duty evaded on imports under all the 29 Bills of Entry, the penalty of ₹ 50,000/- cannot be said to be unreasonable warranting appellate intervention. - Decided partly in favour of assessee.
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