Shyam Ltd. makes an unauthorised import of 3,000 pieces of a product CIF priced at $2 per piece by air from USA. The consignment is liable to be confiscated. The import is adjudicated. Assistant Commissioner gives to the

Computation of Amount Payable to Clear the Consignment Particulars Amount (In ₹) CIF of imported goods (3,000 x $2 x ₹50 per piece) 3,00,000 Add: Landing charges (1% of CIF) 3,000 3,03,000 Add: Basic Customs Duty @ 20% 60,600 3,63,600 Add: Additional Custom Duty @ 12% on ₹3,63,600 43,632 Add: Education Cess 3% on BCD & CVD (3% x (60,600+43,632)) 3,127 Total cost to company 4,10,359 Market price (3,000 pieces x ₹200) 6,00,000 Profit Margin (Market Price - Cost) 1,89,641 Fine equal to 50% of profit margin 94,820 Total amount payable (Duty + Fine) (60,600+43,632+3,127+94,820) 2,02,179 Note: As per Section 125 of the Customs Act, redemption fine shall not exceed market value of the goods excluding import duty. Amount payable to redeem goods = redemption fine + import duty.