TMI Blog2018 (2) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... the FOB value, the matter is being remanded to the original authority. Redemption fine - Held that: - there has been misdeclaration on the part of the importer. It is also noted that in the very same month for similar items, the same omission had occurred. Viewed in this light, we cannot but take the protestations of the appellant into a pinch of salt - taking into account that differential duty liability would be calculated only on 20% of the FOB value, and also taking note of the fact that no research was done on the market value of the goods is evident from the record, it is held that a lower redemption fine of ₹ 1,00,000/- would serve the ends of justice in this case - So also reduction of penalty to ₹ 50,000/- ordered. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... toms Valuation Rules, 2007 to contend that even in case of goods imported by air, even when the cost of transport is ascertainable, such cost for the purpose of calculating the assessable value shall not exceed 20% of the FOB value of the goods. Therefore, in this particular case, only 20% of the FOB value of EURO 29012.11 can be added as freight element, in which case, the differential duty liability would be an amount of ₹ 1,06,386/-. Ld. Advocate concedes that cost of transportation will require to be added in this case, however such cost will have to be restricted only to 20% of FOB value as explained. He also submits that the supplier in the invoice had declared the terms as CFR-Chennai only for which reason they had not declar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the original authority. 5. Coming to the matter of redemption fine, indubitably, there has been misdeclaration on the part of the importer. It is also noted that in the very same month for similar items, the same omission had occurred. Viewed in this light, we cannot but take the protestations of the appellant into a pinch of salt. Nonetheless, taking into account that differential duty liability would be calculated only on 20% of the FOB value, and also taking note of the fact that no research was done on the market value of the goods is evident from the record, we hold that a lower redemption fine of Rs.1,00,000/- (Rupees One lakh only) would serve the ends of justice in this case. So ordered. So also, we order reduction of pen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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