2007 (5) TMI 427 - AT - Customs

Rectification of mistake - Error apparent on record - Held that - Though our Final Order No. 53/2007 dt. 12-1-2007 holds good as on the date of filing of the appeal, we have got to modify it by taking into account the subsequent developments which have a bearing on the results of the appeal - the present text of Final Order No. 53/2007 dt. 12-1-2007 substituted as necessary.

Summary

Issues:
1. Error in Final Order No. 53/2007 regarding confiscation of gold bars and car.
2. Disposal of confiscated items during the pendency of the appeal.
3. Need to modify the final order based on subsequent developments.

Analysis:

Issue 1: Error in Final Order No. 53/2007
The Commissioner pointed out a mistake in Final Order No. 53/2007, where 40 gold bars and a car were confiscated, but the department had already disposed of 39 gold bars and the car. The Tribunal acknowledged the error and decided to amend the final order. The appellant sought redemption of the gold bars and reduction of the fine imposed for the car's confiscation. The Tribunal considered the appellant's arguments, citing relevant case law, and directed the Commissioner to determine redemption fines and penalties from the sale proceeds, reducing the fine for the car and penalty for the appellant.

Issue 2: Disposal of Confiscated Items
During the appeal process, the department disposed of the confiscated items, leading to a need for modification of the final order to reflect the current status. The Tribunal noted that while the initial order was valid at the time of filing the appeal, subsequent developments required adjustments. The appellant's plea for redemption of the gold bars and reduction of fines and penalties was considered in light of the disposal of the goods by the department, leading to a revised final order to realize fines and penalties from the sale proceeds.

Issue 3: Modification of Final Order
In light of the disposal of confiscated items during the appeal, the Tribunal modified the final order to account for the changed circumstances. The Commissioner was directed to determine redemption fines and penalties from the sale proceeds, reducing the fines for the car and penalties for the appellant. The Tribunal emphasized the need for fairness and consistency in applying penalties, considering the disposal of goods and the appellant's right to redemption against payment of fines.

This detailed analysis of the judgment highlights the errors in the original final order, the impact of disposal of confiscated items during the appeal, and the subsequent modifications made by the Tribunal to ensure fairness and compliance with relevant legal provisions and precedents.