2009 (4) TMI 695 - AT - Customs

Summary

Issues involved:
The issues involved in this case are the unauthorized shifting of imported capital goods to different premises without permission, confiscation of goods under Section 111(j) and 111(o) of the Customs Act, imposition of redemption fine and penalty, demand of duty on the shifted goods, and the legality of the Commissioner (Appeals) order.

Unauthorized Shifting of Goods and Confiscation:
The Respondent, a STPI unit, imported 113 Computer Systems duty-free under a scheme but shifted 76 to a licensed warehouse and 37 to unlicensed premises without Customs authority permission. The Original authority confiscated the goods under Section 111(j) and 111(o) of the Customs Act, imposed a redemption fine of Rs. 60,000, and a penalty of Rs. 1,00,000. The Commissioner (Appeals) upheld the confiscation of 37 Computer Systems and the imposition of fine and penalty, reducing the fine to Rs. 30,000.

Demand of Duty and Premature Allegations:
The Commissioner (Appeals) set aside the demand of duty on the goods as they were used for export purposes and duly accounted for. The Commissioner noted that the demand of duty appeared premature since the premises to which the goods were shifted later obtained a license as a private bonded warehouse. The Revenue contested this decision, arguing that the Commissioner's findings were vague and improper, and that the goods were liable for confiscation under the Customs Act.

Legality of Commissioner (Appeals) Order:
The Revenue claimed that the Commissioner (Appeals) granted undue benefit to the unit by exceeding statutory provisions and provisions in the notification. However, upon review, it was found that the Commissioner (Appeals) correctly considered the circumstances and legal provisions in setting aside the duty demand, while upholding the penalty and fine. The Tribunal upheld the Commissioner (Appeals) order as legal and proper, rejecting the Revenue's appeal.

This summary highlights the unauthorized shifting of goods, confiscation under Customs Act sections, duty demand considerations, and the legality of the Commissioner (Appeals) order in the case.