Redemption Fine not imposable When Minimum Import Price Paid on Prime Pre-painted Steel Coils: CESTAT Quashes Penalty under Customs Act

The Chandigarh Bench of CESTAT ruled that no redemption fine is applicable when the minimum import price (MIP) is paid on prime pre-painted steel coils, quashing penalties under the Customs Act, 1962. M/s Hindustan Distributors imported goods from China, declaring a CIF price below the MIP. \r

The Department alleged contravention of Foreign Trade Policy, seeking confiscation under Section 111(d). However, the single bench observed that the MIP was paid as per DGFT notification. CESTAT found insufficient grounds for imposing fines and penalties, noting no attempt at misdeclaration. With confiscation set aside, penalties under Section 112(a) were deemed unnecessary. \r

The ruling underscores adherence to MIP requirements, exempting importers from redemption fines when payments meet regulatory standards.