Home Case Index All Cases Customs Customs + HC Customs - 2024 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (2) TMI 98 - DELHI HIGH COURTPenalty imposed under Section 112 of the Customs Act - confiscation of goods - WPC license were forged and fabricated - Existence of mens rea or not - HELD THAT:- In the instant case, had the authorities applied Section 114AA, the penalty could have been upto five times the value of the Goods. Reference may also be held to section 125 of the Customs Act which provides for option to pay fine in lieu of confiscation and stipulates that the fine shall not exceed the market value of the goods confiscated less duty chargeable thereon. In the instant case, the value of the goods imported were 3.13 crores and the redemption fine imposed is Rs 60 Lakhs which is nearly 19% of the value of the goods and the fine imposed is Rs 15 Lakhs on each of the appellants which translates to about 4.75% (totalling to 9.5%) of the value of the goods - The redemption fine as well as penalty imposed could have been upto the value of the goods i.e. Rs. 3.13 crores, whereas in the instant case, the redemption fine imposed is about 19% and the penalty on both the appellants cumulatively amounts to about 9.5% of the value of the goods. In Akbar Badrudin Giwani [1990 (2) TMI 50 - SUPREME COURT], the Supreme Court also considered the proportionality of conduct vis-a-vis the quantum of penalty. In the present case the Commissioner of Customs could have imposed redemption fine and penalty each of 100% of the value of the goods but has restricted the redemption fine to 19% and penalty to 9.5%. It is found that discretion has been judicially exercised and in fact has been exercised in favour of the appellants by not imposing a harsh or excessive penalty. The question of law is answered in favour of the authority/respondent and against the Appellants/Assessee - there being no infirmity in the impugned order warranting any interference - appeal dismissed.
|