Custom, Excise & Service Tax Tribunal
Shri Kantha Raj, Dr For The Appellant vs Shri S./ Jaikumar, Advocate For The ... on 12 August, 2011
IN THE ,CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, FKCCI COMPLEX, K.G. ROAD,
BANGALORE 56009.
COURT No. 2
DATE OF HEARING : 12/8/2011
DATE OF DECISION : 12/8/2011
Customs Appeal No. 1275 of 2010
(Arising out of the Order-in-Appeal No. 38/2010 dated 19.3.2010, passed by the Commissioner of Customs (Appeals), Cochin)
For approval and signature:
Honble Shri M. Veeraiyan, Member (Technical)
1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? No
2. Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not ? Yes
3. Whether Their Lordships wish to see the fair copy of the Order? Seen
4. Whether Order is to be circulated to the Departmental authorities? Yes
Commissioner of Customs,
Cochin.
Versus
M/s Sagar Enterprises
Appearance
Appellant
Respondent
Shri Kantha Raj, DR for the appellant Shri S./ Jaikumar, Advocate for the Respondent.
CORAM : Honble Shri M. Veeraiyan, Member (Technical) ORDER No..Dated 12/08/2011 Per M. Veeraiyan
1. This is an appeal by the department against the order of the Commissioner (Appeals) No. 38/2010 dated 19.3.2010.
2. Heard both sides.
3. The respondent imported 90 Nos. of used photo copiers of which 72 Nos. were of digital type and 18 Nos. were of analogue type. They were imported in November 2009 and value was declared as USD 18460. The import of old and used photo copiers required licence. Undisputedly, the respondent was not having requisite licence. The consignments were subjected to examination by the Chartered Engineer who estimated the value as USD 33540. The original authority enhanced the value as per the recommendation of the Chartered Engineer and confiscated the goods, but allowed the goods to be redeemed on payment of fine of Rs. 3,40,000/- and imposed penalty of Rs. 2,00,000/-. On appeal by the party, the Commissioner (Appeals) reduced the redemption fine from Rs. 3,40,000/- to Rs. 1,35,000/- and penalty from Rs. 2,00,000/- to Rs. 68,000/-. The department is seeking enhancement of the redemption fine and penalty to the level fixed by the original authority.
4. The learned DR submits that the respondent has been repeatedly involved in importing old and used photo copiers and in fact, they have imported on 39 occasions and therefore, the redemption fine and penalty should be enhanced as imposed by the original authority.
5. The learned Advocate for the respondent submits that the value was steeply enhanced by the original authority based on the Chartered Engineers Certificate. The original authority has not given any finding on the margin of profit. Having imported the consignment, they accepted the enhancement and paid substantially higher amount of duty. The Commissioner (Appeals) has upheld the confiscation but only shown some leniency in the quantum of redemption fine and penalty and therefore, the order is correct and fair.
6. I have carefully considered the submissions made by both sides and perused the records. I find that the original authority has steeply enhanced the transaction value declared by the respondent. This is based on the Chartered Engineers certificate. The enhanced value has not been contested and duty was paid on the said higher value. The Commissioner (Appeals) has upheld the order of the confiscation. Considering the facts and circumstances of the case, the Commissioner (Appeals) has exercised the discretion to reduce the redemption fine and penalty. The reduction in the redemption fine cannot be treated as arbitrary or unreasonable. It is also noticed that the original authority has not given any finding on the profit margin. Under these circumstances, no valid reason has been adduced to interfere with the order of the Commissioner (Appeals).
7. The appeal is, therefore, rejected.
(Pronounced and dictated in the open court) (M. Veeraiyan) Member (Technical) /vc/