2008 (7) TMI 781 - AT - Customs

Summary

Issues: Rectification of mistake in a previous order regarding penalty and redemption fine imposition.

In this case, the Revenue filed an application for the rectification of a mistake in the order dated 2-11-2007. The mistake pointed out by the Revenue was related to the imposition of penalty and redemption fine on goods imported by the appellant during a specific period. The adjudicating authority had imposed a penalty of Rs. 10 lakhs under Section 112(a) of the Customs Act, 1962, which the Hon'ble CESTAT had set aside, considering it to have been ordered in lieu of confiscation. The Revenue contended that redemption fine, not penalty, could be imposed in lieu of confiscation under Section 125 of the Customs Act, 1962. The Hon'ble CESTAT also reduced the redemption fine from Rs. 10 lakhs to Rs. 2 lakhs, stating that penalty in lieu of redemption fine could not be imposed on the same goods.

Upon considering the submissions and perusing the records, the Tribunal found that the order clearly stated that penalty cannot be imposed twice on the same goods. The Tribunal noted that the penalty was imposed twice on the same goods by the adjudicating authority under Section 112(a) of the Customs Act, 1962. The Tribunal concluded that there was no error apparent on the face of the order, as contended by the Revenue. Therefore, the Tribunal dismissed the application filed by the Revenue, deeming it devoid of merits.

In conclusion, the Tribunal's decision emphasized the principle that penalty cannot be imposed twice on the same goods and upheld its previous order regarding the imposition of penalty and redemption fine. The judgment clarified the distinction between penalty and redemption fine under the Customs Act, 1962, and maintained the decision to set aside the penalty while reducing the redemption fine imposed on the goods.