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Issues:
1. Condonation of delay in filing appeal. 2. Classification of goods and imposition of redemption fine and penalty. 3. Justification of redemption fine and penalty imposed by the Commissioner. Issue 1: Condonation of delay in filing appeal The appeal was filed with a delay of about 7 days from the date of the impugned order. The appellants sought condonation of this delay, which was allowed by the Appellate Tribunal. The appeal was taken up for hearing and disposal after the delay was condoned. Issue 2: Classification of goods and imposition of redemption fine and penalty The case involved M/s. Airport Authority of India importing Halogen Lamps for their own use on airport runways. The importer claimed classification under Customs Tariff Heading 8539.49 and sought the benefit of a concessional rate of customs duty under Customs Notification No. 23/98. Customs authorities detained the goods, claiming they required a special import license. The Commissioner of Customs passed an order confiscating the goods under Section 111(d) of the Customs Act and imposed a redemption fine of Rs. 3 lacs along with a personal penalty of Rs. 1 lac under Section 112(a). The appellants redeemed the goods by paying the fine and penalty. The appeal challenged the proportionality of the fine and penalty in relation to the offense committed. Issue 3: Justification of redemption fine and penalty imposed by the Commissioner The Appellate Tribunal examined the submissions made by the appellants, where they highlighted previous imports of similar goods without any objection from customs authorities. The appellants argued that the Commissioner did not consider their submissions adequately before imposing the fine and penalty. The Tribunal noted that the Commissioner did not provide reasons for the penalty imposed or the proportionality of the fine in relation to the value of the goods. While acknowledging the liability of goods to confiscation, the Tribunal found the lack of reasoning for the penalty and fine imposed. Hence, the Tribunal modified the order, reducing the redemption fine to Rs. 2 lacs and vacating the penalty due to the absence of reasons for its imposition. The appeal was allowed to the extent of modifying the fine and penalty, considering the circumstances and the nature of the appellants as a public sector undertaking. This detailed analysis covers the issues of condonation of appeal delay, classification of goods, and the justification of the redemption fine and penalty imposed by the Commissioner in the legal judgment delivered by the Appellate Tribunal CEGAT, New Delhi.
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