Raghav Alloys Pvt ltd vs Commissioner Of Customs, Ludhiana

The appellant is in appeal against the impugned order wherein redemption fine of Rs. 57,800/- along with penalty of Rs. 38,500/- has been imposed.

The facts of the case are that the appellant is importer of consignment of heavy melting scrap under bill of entry no. 103226 dated 20.08.2004 of the 9 containers 3 were cleared by customs, and out of remaining 6 containers, 2 containers MLCU 2516900, IRSU 2301664 were found containing war material in form of used/rusted bomb shells along with HMS. All 6 containers were proposed for confiscation on the ground that imported goods were in violation of para 2.32 of handbook procedure because import of explosive material was prohibited under Section 11 of the Customs Act, 1962. By way of the adjudication, the option was given to the appellant to redeem the goods on payment of redemption fine of Rs. 3,50,000/- and war material/explosive was confiscated absolutely and penalty of Rs. 1,00,000/- was imposed. The said order was challenged before the Ld. Commissioner (Appeals). The Ld. Commissioner (Appeals) has passed the order as under:-

"4.2 However, under the circumstances discussed above, the redemption fine and penalty is reduced, as below:-

1.

Total value of imported consignment 09 containers vide B/E No-103226 dated 28.08.2004

Rs. 17,34,816

2.

The value of impugned goods loaded in 02 containers held liable for confiscation (on average value basis)

Rs. 3,85,515

3.

Redemption Fine @ 15% on above 02 confiscated containers

Rs.57,800

4.

Penalty u/s 112 @ 10% of value of 02 confiscated containers

Rs. 38,500

Against the imposition of redemption fine and penalty, the appellant is before me.

The Ld. Counsel for the appellant submits that the appellant has not having any knowledge of the fact that these containers were containing damaged war material/explosives and the explosive has already been disposed off, in that circumstances, the redemption fine and penalty is not imposable further he relied on the decision of this Tribunal in the case of Ms. Bassi Alloys (P) Ltd Vs. C.C. (Prev) Amirtsar vide Final Order No. 53406/2015 dated 26.10.2015

I find that in the case of Ms. Bassi Alloys (P) Ltd Vs. C.C. (Prev) Amirtsar (Supra) the facts are different from case in hand as in the said case pre-inspection certificate was produced by the importer showing that the goods are only HMS wherein the case in hand the said certificate has not produced by the appellant therefore, the said decision is not applicable to the facts of this case. Further, I find that the appellant also came to know the fact that the impugned goods are containing war material/explosives at the time of examination of the imported goods.

In that circumstance, redemption fine and penalty imposed on the appellant are on higher side, therefore the same are reduced as under:

(i) redemption fine 20,000/- and

(ii) penalty Rs. 10,000/-. In view of this, the appeal is disposed off.

(Dictated and pronounced in the open court)