2009 (5) TMI 786 - AT - Central Excise

Summary

Issues:
1. Confiscation and redemption fine on goods removed clandestinely without seizure.

Analysis:
The judgment revolves around the issue of whether goods removed clandestinely without payment of duty can be subject to confiscation and redemption fine even if they were not physically seized. The Commissioner (Appeals) confirmed duty on the allegations of clandestine removal but did not impose redemption fine as the goods were not available for seizure. The department appealed seeking confiscation and redemption fine based on the case law of Weston Components Ltd. v. CC, New Delhi. The Commissioner (Appeals) analyzed the nature of confiscation under Section 125 of the Customs Act, highlighting that it is penal in nature, and redemption is a concession. Referring to the case law, the Commissioner concluded that in situations where goods are not physically available for confiscation, imposition of redemption fine may not be warranted.

The Tribunal upheld the decision of the Commissioner (Appeals), emphasizing that since the goods were removed clandestinely and not seized, the question of confiscation does not arise. The judgment highlighted that the offer of redemption is a concession, and respondents cannot be compelled to exercise this option if goods are not physically available for redemption. By citing a similar case where redemption fine was not imposed when goods were not available for confiscation, the Tribunal supported the decision to reject the Revenue's appeal. The Tribunal differentiated the case law cited by the Revenue, emphasizing the distinction when goods are not physically present for confiscation.

In conclusion, the Tribunal affirmed the order of the Commissioner (Appeals) and rejected the Revenue's appeal, emphasizing that since the goods were removed clandestinely and not seized, confiscation and redemption fine were not applicable. The judgment provides a detailed analysis of the legal principles surrounding confiscation and redemption fines in cases where goods are removed clandestinely without being physically seized, aligning with the interpretation of relevant provisions under the Customs Act.