2001 (11) TMI 787 - AT - Customs

Summary

Issues: Rectification of mistake in the Final Order regarding confiscation of goods and imposition of penalty under the Customs Act.

The judgment deals with a Rectification of Mistake (ROM) application filed by the appellants seeking rectification in the Final Order passed by the Tribunal. The appellants contested the order-in-original dated 29-2-2000, which involved confiscation of goods and imposition of a penalty under Sections 111(d) and (m) of the Customs Act. The main contention raised was regarding the redemption fine imposed by the Commissioner of Customs, which the appellants argued was in violation of Section 125(1) of the Customs Act. The appellants sought a redetermination of the redemption fine in accordance with the provisions of Section 125(1) of the Customs Act.

Upon hearing both sides and examining the record, the Tribunal delved into the provisions of Section 125 of the Customs Act. The section allows the officer adjudging confiscation to give the owner of the goods an option to pay a fine in lieu of confiscation, with the fine not exceeding the market price of the confiscated goods. The Commissioner had ordered confiscation of goods valued at Rs. 10,42,750/- and imposed a redemption fine of Rs. 5,00,000/- along with a penalty of Rs. 50,000/-. The Tribunal noted that the redemption fine imposed was not exorbitant or unwarranted, considering the circumstances of the case. The appellants failed to provide evidence to prove that the redemption fine exceeded the market price of the confiscated goods. As the redemption fine was lower than the value of the confiscated goods, the Tribunal concluded that there was no violation of Section 125 of the Customs Act in determining the redemption fine.

In light of the above observations, the Tribunal found no mistake of fact or law on the face of the final order that warranted rectification. Consequently, the ROM filed by the appellants was dismissed as lacking merit.