Case Law Details
C.C.-Mundra Vs Gamesa Renewable Pvt Ltd (CESTAT Ahmedabad)
CESTAT Ahmedabad held that higher redemption fine and penalty imposable as appellant is a repeated offender and is violating the Minimum Import Price (MIP) condition prescribed by DGFT frequently.
Facts- Siemens Gamesha Renewable Power Pvt. Ltd were engaged in import of “Prime hot rolled steel plates shotblasted/ coated with Zinc Silicate” falling under Tariff Heading No. 72103092.
Notification No. 38/2015 dated 05.02.2016 issued by Directorate General of Foreign Trade (DGFT) prescribed Minimum Import Price (MIP) of Iron and Steel under Chapter 72 of ITC (HS), 2012-Schedule-1 (Import Policy). In the said notification at Serial No. 125 the subject goods were subjected to Minimum Import Price (MIP) of US $ 643 per MT. The importer namely Gamesha Renewable Power Pvt. Ltd (GRPL) imported the said goods declaring a price of US $ 398 per MT. As against, the Minimum Import Price prescribed by DGFT US $ 643 Per MT. The goods were confiscated by the original adjudicating authority for violating of import policy. The original adjudicating authority revised the assessable value of the goods based on Minimum Import Price and demanded Customs Duty on the said revised price. The original adjudicating authority also imposed a redemption fine amounting to Rs. 3 Crores and imposed penalty of Rs. 1 Crores under Section 112(a) of Customs Act, 1962.
Commissioner (Appeals) came to the conclusion that the assessable value cannot be revised on account of Minimum Import Price fixed by DGFT. Relying on the decision of Tribunal in appellants own case, the Commissioner (Appeals), revised the redemption fine and penalty drastically on the lower side on the ground that CESTAT in its earlier order had done the same. Being aggrieved, revenue has preferred the present appeal.
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