TMI Blog2001 (8) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by Commissioner of Customs, Custom House, Madras-1 in which the Commissioner has held that 9000 kgs. of Guaicol is liable for confiscation under Section 111 (o) of the Customs Act, 1962 and as the same were not available for confiscation, he has imposed a fine of Rs. 2,10,000/-. This amount of Rs. 2,10,000/- was appropriated out of the paid amount of Rs. 13,29,073/- towards payment of duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t rendered in the case of CC, Trichy v. Sundaram Industries Ltd. in RCP No. 29/2000, dated 10-4-2001 wherein the Hon'ble High Court of Judicature has held while relying on the Supreme Court judgment in the State of Madhya Pradesh v. Bharat Heavy Electricals Ltd. reported in 1998 (99) E.L.T. 33 (S.C.) in which the penalty which was imposed equal to 10 times the amount of entry tax was reduced. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, submitted that the order of imposition of redemption fine on the goods which were not available may be set aside. 4. Ld. DR submits that the raw material was imported free of import duty under the DEEC Scheme and to fulfil the export obligation. The ld. DR has stated that they had not fulfilled the export obligation and the goods which were manufactured by them were diverted to the local ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal judgment cited supra, no redemption fine can be imposed on goods which are not available for confiscation. As regards the plea of the appellants for reduction of penalty, we find that equal amount of penalty has been wrongly levied inasmuch as they had used the raw materials in the production of goods which have been cleared on payment of Central Excise duty. Since they have diverted the ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew of the above facts and circumstances, respectfully following the judgment of the Tribunal rendered in the case of CCE, Trichy v. Sundaram Industries Ltd., we reduce the penalty from Rs. 13,29,073/- to Rs. 4,50,000/- (Rupees four lakhs fifty thousand only) being about 30% of the duty amount. At this point ld. Counsel submits that since they have already deposited an amount of Rs. 1,00,000/- as p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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