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PJ/Case Laws/2011-12/1161

Quantum of fine & penalty

Case: M/s Dhillon Enterprises Versus Commissioner of Customs
 
Citation: 2011TIOL-260-HC-P&H-CUS
 
Issue:- Quantum of fine and penalty – to be fixed depending upon the facts and circumstances of a case – no flexible criteria exists.
 
Brief Facts:- The petitioner imported goods and sought clearance thereof under the provisions of the Customs Act, 1962. It was found that petitioner had wrongly declared lesser value of goods and the import was against the import policy. Accordingly, the goods were held to be liable for confiscation under Section 111(d) of the Act.
 
The Adjudicating Authority ordered confiscation of the goods but in exercise of power under Section 125 of the Act, gave option to the petitioner to redeem the same on payment of redemption fine of Rs. 230000/-. Penalty of Rs. 40000/- was also imposed. The said order was upheld by the appellate authority as well as the Tribunal.
 
The Tribunal however, reduced the quantum of fine and penalty. It was held that total waiver thereof was not called for but in circumstances, the fine amount was reduced from Rs. 230000/- to 1 Lakh and penalty was reduced to Rs. 20000/-.
 
Petitioner further writ petition before the High Court.
 
Petitioner’s Contention:- Petitioner submitted that quantum of fine and penalty imposed are excessive and disproportionate to the gravity of offence.
 
Reasoning of Judgment:- The High Court held that that it is not dispute that the import by the petitioner was illegal. Once it is so, there is no ground to interfere with the quantum of fine and penalty to be levied. Quantum of fine and penalty depends upon facts and circumstances of a case for which there cannot be any inflexible criteria. The Tribunal having determined the quantum having regard to the facts and circumstances of the case in absence of perversity, it cannot be held that there is any illegality therein. No substantial question arises.
 
Decision:- Appeal dismissed. 

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