2003 (12) TMI 195

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..... d allowed them to be redeemed on a fine of Rs. 12 lakhs and imposed a penalty of  Rs. 1,75,000/- on goods valued at Rs. 11,13,816/-. Hence this appeal. 2. Heard both sides and considered the issue, it is found - (a)        The loading of valuation is 'not pressed' by the learned Advocate. Appeal on that issue is rejected. (b)        As regards redemption fine, it is found - (i)       On margin of profit, the Customs Appraising Manual Vol. II, Second Ed., published in 1990 prescribes in Chapter 5, Para 5 as - "5. Margin of profit : (a) Market enquiries - In terms of Section 125 of the C.A. 62 the adjudication officer may impose a .....

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.....    Other Articles - 50% for non-banned 100% for banned to that category of licenses to which the, importer belongs. In all cases whether relating to base articles or others, the fine will not be less than the margin of profit. List of Basic Articles : (i) Non-interchangeable parts of machinery and equipment (except cinema equipment) designed for use in project, mining, factories, agriculture, laboratories, training institutes and hospitals ("Equipment" will include instruments, apparatus and appliances and also specialised vehicles like Dumper and Fork-lift trucks). (ii) (a) Unfinished forms, casting and forging of non-interchangeable parts specified under (i) above, and    (b) Specified alloys for the manufacture o .....

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..... goods are treated as 'Restricted' and not 'prohibited/banned' goods. The ITC (HS) classification categorising imports as free, restricted, cannalized, prohibited. Import, of the impugned goods as herein would be permissible without a licence, as capital goods, to eligible class of importer, as held by this Tribunal in the case of Gripwell Forgings & Tools [2002 (146) E.L.T. 136 (T) = 2002 (103) ECR 67], therefore as prescribed, in the Manual, for Basic goods, redemption fines could not go beyond 50%, if and when so required, special reasons are to be found to exist. No such special reasons are found by the adjudicator in the impugned order. (iii)    While upholding the liability to confiscation it is found that the fine, in .....

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