2002 (7) TMI 642 - AT - Customs

Summary

Issues Involved:
The judgment involves the imposition of redemption fine, differential duty, and personal penalty u/s 112(A) of the Customs Act, 1962 on the appellants for the wrong-shipment of goods by the foreign supplier, leading to a dispute regarding re-export.

Imposition of Redemption Fine and Differential Duty:
The appellants obtained an advance license for importing goods but received a different shipment than ordered. The Commissioner allowed re-export on payment of a redemption fine of Rs. 5 lakhs and differential duty of Rs. 8 lakhs if cleared for home consumption. The appellants contested, citing lack of mala fide intent and immediate action upon discovering the error. The Tribunal referred to precedents stating that in cases of re-export, no redemption fine should be imposed. Given the genuine mistake by the foreign supplier and the appellants' prompt response, the Tribunal set aside the redemption fine and duty, allowing re-export without financial penalties.

Imposition of Personal Penalty:
The Commissioner also imposed a personal penalty on the appellants u/s 112(A) of the Customs Act, 1962. The appellants argued that they were not at fault and took swift action upon discovering the wrong shipment. The Tribunal, considering the absence of evidence implicating the appellants in the error, concluded that the penalty was unjustified. The Tribunal found the appellants' actions to be in good faith and set aside the personal penalty, allowing re-export without any financial penalties.

Conclusion:
The judgment by the Appellate Tribunal CEGAT, Kolkata overturned the imposition of redemption fine, differential duty, and personal penalty on the appellants for the wrong-shipment of goods by the foreign supplier. The Tribunal ruled in favor of the appellants, allowing re-export without any financial penalties due to the genuine mistake and the appellants' prompt and honest response to the situation.