1999 (6) TMI 205 - AT - Customs

Summary

Issues:
Appeal against Order-in-Original regarding import of Cassia of Chinese origin; Validity of fine and penalty imposed.

Analysis:
The appeal involved a dispute regarding the import of Cassia of Chinese origin by the appellants from the Port of Tuticorin. The goods were confiscated due to the importers' inability to produce a valid import license, and a redemption fine of Rs. 16,44,180/- along with a penalty of Rs. 1,37,000/- was imposed. The appellants did not contest the confiscation but argued that the quantum of the fine was excessive, amounting to almost 120% of the CIF value.

The appellants' advocate referenced previous final orders issued by the Tribunal on similar imports of Cassia in nearby ports to support their argument. They highlighted cases such as Shagaroobjee Pukharej, Chiku International, General Traders, Shankar Trading, M.J. Enterprises, and Balaji & Co. & Others. Additionally, they mentioned the dismissal of Revenue's appeal in the case of C.C.E. v. Diamond Traders by the Tribunal.

The Tribunal, after considering the submissions and records, referred to Final Order No. 1320/98 in the case of Shankar Trading Company, where it was determined that the redemption fine for similar imports should be around 75% of the CIF value. This ratio was also applied in the cases of General Traders and Balaji and Company for imports around the same period. Given the proximity of the present import date to those cases and assuming no significant market price changes, the Tribunal decided to reduce the redemption fine to 75% of the CIF value in this case as well.

Consequently, the Tribunal modified the Order-in-Original by reducing the Redemption Fine to 75% of the CIF Value, partially allowing the appeal with consequential relief as per law.