2006 (5) TMI 360 - AT - Customs

Summary

Issues:
Violation of Para 2.17 of EXIM Policy 2002-2007 by importing used computers without a license, setting aside of redemption fine by the Commissioner, imposition of redemption fine as per Section 125 of the Customs Act, consideration of leniency due to charitable activities, determination of redemption fine amount based on precedents.

Violation of Para 2.17 of EXIM Policy 2002-2007:
The case involved the import of 270 used computers by a registered institution engaged in charitable activities, which was found to be in violation of Para 2.17 of the EXIM Policy 2002-2007. The importer pleaded ignorance, stating they believed used computers could be imported without a license. The Commissioner set aside the redemption fine considering the organization's charitable nature and reduced the penalty. However, the Revenue contended that redemption fine is mandatory under Section 125 of the Customs Act once goods are confiscable.

Imposition of Redemption Fine:
Upon careful consideration, the Tribunal upheld the Revenue's contention that a redemption fine was imposable due to the clear violation of the EXIM Policy. Various judgments were cited to determine the appropriate redemption fine amount, considering factors such as lack of profit margin, specific circumstances of the case, and the totality of facts. Following precedents, the Tribunal fixed the redemption fine at Rs. 10,000, modifying the Commissioner's decision and allowing the appeal in part.

Leniency for Charitable Activities:
Although the Respondents did not challenge the confiscability of the goods, they sought leniency due to their charitable institution status and financial constraints. The Tribunal acknowledged the charitable work but emphasized the imposition of the redemption fine as per legal requirements, balancing leniency with adherence to customs regulations.

In conclusion, the Tribunal ruled in favor of imposing a redemption fine of Rs. 10,000 for the violation of the EXIM Policy, considering the charitable nature of the organization and the need to uphold customs regulations. The decision highlighted the importance of following legal provisions while also taking into account the specific circumstances of each case.