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2004 (64) RLT 284 (CESTAT-Che.)
(In the Customs, Excise & Service Tax appellate Tribunal Chennai)
Present :
Jyoti Balasundaram, Member (Judicial)
Shri Jeet Ram Kait,Member
(Technical)
Versus
(Final
Order No. 351/2004 dt. 29.3.2004 certified on 5.4.2004 in Appeal No.
C/203/2003)
Assessable
value – Section 14 of Customs Act, 1962 – Old machines – the value recommended
by the Chartered Engineer has not been disputed by the appellant before the
adjudicating authority – enhancement of declared value sustainable. (Para 5)
Appearances : Shri
R. Ganesan, Adv. for Appellant
Shri.
C.Mani, DR. for Repondent (Para 2)
Cases Referred:
1. CC,Madras Vs. Sundaram
Fasteners Ltd.
1996
(15) RLT 290 (CEGAT)-Referred
This appeal is directed against
Order-in-Original No. 628/2003 dated 07.5.2003, by which the Id. Commissioner
has enhanced the assessable value to US $ 75,000 from the declared value of US
$ 60,000 CIF. He has also confiscated the goods under Section 111 (d) of the
Customs Act 1962. However he allowed the importers an option to redeem the
goods on payment of fine of Rs. 10,80,000/- under Section 125 of the Customs
Act, 1962. He has also imposed a penalty of Rs. 5,40,000/- under Section 112 (a) of the Customs Act,
1962.
………………..
5 We have considered the submissions
made by both the sides and we find that the importers vide their letter dated
6.5.2003 and as per the recordings by the Commissioner have accepted the
value of US $ 75,000 CIF as recommended
by the Indian Chartered Engineer for the purpose of adjudication and assessment
and they had only requested that a lenient view in the matter taking in view
that damage was caused to the machine during transit and the heavy demurrage
incurred by them and the fact that they are the actual users of the machine.
Therefore as regards, the value, the value of US $ 75000 CIF has been accepted
by them and there was no dispute on this value before the adjudicating
authority. As regards the confiscation, since the goods were more then ten
years old and have been imported without a specific import licence they
are liable for confiscation under
Section 111 (d) of the Customs Act read with Section 3 (3) of Foreign Trade
Development Regulation Act, 1992 and the importers are also liable for penalty
under Section 112 (a) of the Customs Act. However keeping in view the overall
facts and circumstances of the case, as pleaded by the appellants and the
recording by the Id. Commissioner we reduce the redemption fine from Rs. 10.80
lakhs to Rs. 7.00 lakhs and reduce the penalty from Rs. 5,40 lakhs to Rs. 2.50
lakhs. But for the above modification, the appeal is otherwise rejected.
Ordered accordingly.
Dictated and pronounced in open
Court.
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