2004 (5) TMI 397 - AT - Customs

Summary

Issues:
Violation of Para 5.4 of the Hand Book of the Policy regarding sale of second hand machinery, imposition of penalty, confiscation of goods, remand for consideration of penalty and redemption fine.

Analysis:
The appeal was filed by the Revenue against the Order passed by the Commissioner of Customs, Visakhapatnam, which ordered the confiscation of second hand machinery sold by the importer in violation of Para 5.4 of the Hand Book of the Policy. The Commissioner granted redemption on payment of a fine but did not impose a penalty, considering the importer as an actual user of the goods and the temporary nature of the restriction. The Tribunal referred to a previous judgment upholding penalty imposition for Exim Policy violations and noted that once goods are confiscated, a penalty is imposable. The Tribunal found the Commissioner's failure to impose a penalty as an error and remanded the matter back for penalty imposition and enhancement of the redemption fine, granting the Respondent an opportunity of hearing.

The Tribunal considered the submissions made by the learned DR and reviewed the previous judgment in a similar case. It concluded that the Commissioner erred in not imposing a penalty for the violation of the Exim Policy. The Tribunal agreed with the Revenue's grounds for remanding the matter for penalty imposition on the Respondent. Consequently, the Tribunal allowed the Revenue's appeal by remanding the case to the Commissioner of Customs, Visakhapatnam, for a fresh consideration regarding the imposition of penalty and enhancement of the redemption fine, ensuring that the Respondent is given a chance for a hearing.

In summary, the judgment dealt with issues related to the violation of the Hand Book of the Policy, imposition of penalty, confiscation of goods, and remand for consideration of penalty and redemption fine. The Tribunal found the Commissioner's failure to impose a penalty for the Exim Policy violation as an error and remanded the case for penalty imposition and enhancement of the redemption fine, providing the Respondent with a hearing opportunity.