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Issues:
1. Confiscation of imported machinery under Section 111 of the Customs Act and imposition of a redemption fine. 2. Appeal before the Commissioner of Customs (Appeals) challenging the order of confiscation and redemption fine. 3. Interpretation of whether confiscation can be ordered when goods are not available. 4. Analysis of relevant case laws and judgments supporting the contentions of both parties. 5. Application of Section 126 of the Customs Act in determining the outcome of the appeal. Detailed Analysis: 1. The initial issue revolved around the confiscation of imported machinery under Section 111 of the Customs Act and the imposition of a redemption fine of Rs. 60,000. The Commissioner of Customs (Appeals) set aside the order of confiscation and redemption fine based on the argument that since the goods had been unconditionally released and were not available, they could not be confiscated. This decision was supported by the judgment in the case of M/s. Weston Components Ltd. v. CC, New Delhi and other similar decisions by the Tribunal. 2. The appeal by the revenue was against the finding that confiscation cannot be ordered when goods are not available. The revenue contended that confiscation can still be ordered even if goods are not physically available, citing previous Tribunal decisions. The contention was that once goods are found to be offending and liable to confiscation, they can be confiscated regardless of their physical availability. 3. The Tribunal analyzed the arguments from both sides and referred to the judgment in the case of Weston Components Ltd. v. CC to determine the scope of imposing redemption fine in the absence of goods. The Tribunal held that goods which have been cleared cannot be confiscated or have redemption fine imposed, emphasizing the importance of goods being available for such actions. 4. The Commissioner's order was based on a correct understanding of the judgment in the Weston Components case and was further supported by the provisions of Section 126 of the Customs Act. Section 126 states that when goods are confiscated, they shall vest in the Central Government, which logically cannot happen if the goods are not available. Therefore, the Tribunal found no merit in the revenue's appeal and rejected it, upholding the Commissioner's decision. In conclusion, the judgment clarified the principles regarding confiscation and redemption fines in cases where goods are not physically available, emphasizing the importance of goods being present for such actions to be valid under the Customs Act.
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