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2023 (12) TMI 323 - CESTAT CHENNAIImposition of redemption fine and penalty - import of Kiwi Fruits which was stated to be of Chile Origin - goods were undervalued - enhancement if value - appellant argued that the impugned order is passed with much delay and is therefore to be considered as non-est in law - HELD THAT:- In para-9 of the impugned order the Commissioner (Appeals) has noted that there is no margin of profit as the goods are ordered to be re-exported. Further, it is also to be seen that the appellant has incurred huge loss due to demurrage charges etc. as the goods have been ordered to be re-exported. The goods are of perishable nature. Since they are ordered to be re-exported, the redemption fine imposed is without any basis and requires to be set aside. In the decision relied by the learned counsel for appellant M/S. GOYAL TRADING CO., M/S. GULAB FIBRES, M/S. UNITEC INC. VERSUS COMMISSIONER OF CUSTOMS, NHAVA SHEVA-III [2023 (10) TMI 294 - CESTAT MUMBAI] it is held that when the goods are allowed to be re-exported, no redemption fine is to be imposed - it is found that redemption fine of Rs.5 lakhs imposed under Section 125 for redeeming the goods for the purpose of re-export only requires to be set aside. Penalty imposed under Section 112 (a) as well as Section 114AA of the Customs Act, 1962 - HELD THAT:- The facts bring out a case of forgery and manipulation of the documents submitted along with the Bills of Entry. It is the responsibility of the importer to furnish correct and genuine documents so as to assist in smooth clearance of the goods by the Customs Department - In the present case, the forgery and manipulation of the document is explicit and details are mentioned in the table in para 2.2. of the OIO. It is also noted that the Commissioner (Appeals) has observed that though the purchase was made on High Sea sale basis, there is room to doubt the bonafides of the importer - taking into consideration that the goods are being ordered to be re-exported, and also that the appellant has incurred huge demurrage charges, the penalty imposed under Section 112 (a) (i) can be reduced from Rs.5 lakhs to Rs.4,00,000 lakhs (Rupees Four lakhs only). So also, the penalty imposed under Section 114AA of the Act is reduced from Rs.10 lakhs to Rs.8,00,000/- (Rupees eight lakhs only). The impugned order is modified to the extent of setting aside redemption fine of Rs.5 lakhs without disturbing the order to re-export the goods. The penalty imposed under Section 112 (a) is reduced from Rs.5,00,000/- to Rs.4,00,000/-. Penalty imposed under Section 114AA is reduced from Rs.10,00,000/- to Rs.8,00,000/- - Appeal allowed in part.
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