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2022 (5) TMI 261 - AT - CustomsLevy of redemption fine and penalty - MIsdeclaration of quantity of export goods - rejection of declared value - Big Onions - perishable commodity - case of appellant is that excess quantity taken in order to compensate the weight loss on account of drying of the onion - monetary benefit out of the excess quantity declared is made or not - HELD THAT:- The appellant has misdeclared almost 11 MTs of goods. The explanation given is that onion being a perishable commodity, they have loaded excess quantity to compensate the weight loss on account of drying of the cargo. Though such an explanation cannot be accepted when the excess quantity is so huge, it has to be seen that the redemption fine for the excess value of Rs.4,76,400/- is too high. The authorities below have imposed a redemption fine of Rs.3,35,750/-. Since the cargo is of perishable in nature, the profit margin would be very less. The redemption can be reduced to Rs. One lakh. Penalty - HELD THAT:- Section 114(iii) states that the penalty imposed is not to exceed the value of the goods as declared by the exporter or the value as determined under the Act whichever is greater. For these reasons, it is found that the penalty imposed under sec. 114(iii) does not require any interference. On perusal of the orders passed by the authorities below, nothing is brought out to prove and establish that the appellant has knowingly and intentionally made any false documents. It is explained by them that the excess quantity was loaded in order to compensate the loss on account of drying of the onion which are perishable goods. Taking these facts into consideration, the penalty imposed under sec. 114AA is set aside. The impugned order is modified to the extent of reducing the redemption fine from Rs.3,33,750/- to Rs.1,00,000/- (Rupees one lakh only) and setting aside fully the penalty imposed under sec. 114AA of the Customs Act, 1962 - Appeal allowed in part.
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