2002 (1) TMI 1184 - AT - Customs

Summary

Issues:
- Validity of Special Import License for gold jewellery
- Confiscation of goods under Section 111(d) of the Customs Act
- Imposition of redemption fine and penalty

Validity of Special Import License for gold jewellery:
The case involved an appeal against an adjudication order concerning the import of gold jewellery by an importer. The importer claimed the benefit of Notification No. 117/94-Cus. and produced a Special Import License. However, the Customs authorities informed the importer that the Special Import License was not valid for gold imports from 1-4-2001. The Commissioner of Customs rejected the request for re-export and confiscated the goods under Section 111(d) of the Customs Act, imposing a redemption fine and a penalty. The appellants argued that the imposition of fine and penalty was unjustified as they believed the goods were covered by the Special Import License at the time of import, citing a Tribunal decision in a similar case.

Confiscation of goods under Section 111(d) of the Customs Act:
The revenue contended that the goods were not covered by the Special Import License and were rightfully liable for confiscation. They argued that the importer could only re-export the goods after paying the redemption fine and duty, claiming drawback up to 98% of the duty under Section 74 of the Customs Act. The Tribunal considered the peculiar nature of the case where the Special Import License facility was withdrawn after the order was placed but before the import. Referring to previous decisions, the Tribunal noted that in similar situations, re-export without fine and penalty had been allowed.

Imposition of redemption fine and penalty:
Considering the decisions of the Tribunal and the specific circumstances of the case, the Tribunal concluded that since the goods were allowed to re-export, there was no basis for imposing a redemption fine and penalty. Therefore, the Tribunal set aside the imposition of fine and penalty, allowing the re-export of goods without any additional financial obligations. As a result, the appeals were allowed in favor of the importer.