2002 (3) TMI 327 - AT - Customs

Summary

Issues:
1. Permission for re-export of gold jewellery denied by Additional Commissioner.
2. Imposition of redemption fine and penalty on M/s. Venus.
3. Appeal against the decision of the Commissioner (Appeals) by the Revenue.
4. Legal provisions regarding re-export of confiscated goods.
5. Interpretation of Customs Act and relevant case laws.

Analysis:

1. The case involved two appeals, one by M/s. Venus Gems & Jewellery and the other by the Revenue, stemming from a common order passed by the Commissioner (Appeals), New Delhi. The dispute arose when the Customs Department informed M/s. Venus that their Special Import Licence was not valid for importing gold jewelry after a certain date, leading to the denial of permission for re-export by the Additional Commissioner.

2. The Additional Commissioner, through an Adjudication Order, confiscated the jewelry but allowed for redemption on payment of a fine and imposed a penalty. On appeal, the Commissioner (Appeals) upheld the decision but modified it to permit re-export after redemption and penalty payment. The Revenue appealed against this decision, while M/s. Venus contested the imposition of the redemption fine and penalty.

3. The Revenue argued that re-export should not have been allowed without proper reasons, citing a Supreme Court decision that duty becomes payable when confiscated goods are redeemed. On the other hand, M/s. Venus contended that once goods are allowed for re-export, fines and penalties are not justified, supported by various legal precedents and customs practices.

4. The Tribunal examined the legal framework and case laws related to the re-export of confiscated goods. It was established that when goods are confiscated due to a prohibition, and an option for fine payment is given, the prohibition is lifted, allowing for re-export without additional penalties. This principle was supported by previous decisions and the Customs Act.

5. Relying on past judgments, including those by the Supreme Court and the Tribunal, it was concluded that in the present case, where re-export was permitted, the imposition of redemption fines and penalties was unwarranted. Therefore, the Tribunal set aside the fines and penalties, allowing for the re-export of goods without any additional financial obligations, thereby ruling in favor of M/s. Venus Gems & Jewellery and rejecting the Revenue's appeal.