9911796707
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Issues:
The appeal concerns the permission granted for re-export of goods subject to payment of redemption fine, based on an order by the Addl. Collector of Customs. Jurisdictional Challenge: The appellants, engaged in manufacturing tyres and tubes, sought to re-export Tie bars and Tie chains received inadvertently without any purchase order. They contested the Collector's jurisdiction to impose a redemption fine of Rs. 5,000 due to the absence of an order or letter of credit. Policy Violation and Legal Authority: The respondent argued that the re-export was justified due to a violation of the I.T.C. Policy, citing paragraph 128 of the Handbook of Import and Export Procedures 1985-88. This paragraph emphasizes the consequences of unauthorized imports and the discretion of authorities to permit re-shipment upon payment of fines or penalties. Legal Analysis - Section 125 of the Act: Section 125 of the Act empowers authorities to offer the option of paying a fine in lieu of confiscation for prohibited goods. The Collector's order initially confiscated the goods but lacked the authority to allow re-export upon payment of a redemption fine. The provision aims to validate imports by allowing owners to pay fines to avoid confiscation, not for re-export purposes. Decision and Modification: The Tribunal modified the Collector's order, confiscating the goods but permitting the appellants to redeem them by paying the fine of Rs. 5,000. This decision aligns with the legal framework under the Act, enabling the appellants to retain ownership and export the goods in compliance with relevant regulations. This summary encapsulates the key aspects of the judgment, addressing the jurisdictional challenge, policy considerations, legal analysis of Section 125, and the final decision modifying the Collector's order.
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