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2009 (7) TMI 648 - AT - CustomsPenalty- The exporters, their CHA and the shipping line in respect of export consignment covered by Shipping Bill are the appellants, who are aggrieved by the penalties imposed on them under Section 114 of the Customs Act. The exporter has also challenged the redemption fine imposed on them. A show-cause notice was issued by Commissioner of Customs to these appellants. The proposal, in that notice, to confiscate the goods under Section 113(g) of the Customs Act and impose penalties under Section 114(iii) of the Act was contested by the parties concerned. Held that- It is a common ground of these appeals that the penalties imposed on the appellants are harsh. Penalties on the exporter and the CHA are Rs. 2.60 lakhs each, which appears to have been determined at 10% of the FOB value of the goods. Under Section 114(iii) of the Act, the quantum of penalty shall not exceed the value of the goods as declared by the exporter or the value that is determined under the Act, whichever is the greater. The penalty on the above parties, is only about 10% of the FOB value of the goods. The penalty on the shipping line is Rs. 4.00 lakhs. By all means, the conduct of the shipping line is far more blameworthy and therefore, the higher penalty on them than what was imposed on the exporter and the CHA cannot be said to be unfair. However, a penalty of Rs 4.00 lakhs on the shipping line when compared to the penalty of Rs. 2.60 lakhs imposed on the exporter appears to be a little harsh.
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