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1. Imposition of redemption fine in case of irregularly imported goods. Analysis: The judgment revolves around the issue of whether a redemption fine is imposable when goods are irregularly imported and subsequently found to be liable for confiscation. The case involved imported Polyester Fabrics, initially classified as non-textured, with a dispute arising regarding their texture classification. The Central Revenue Laboratory (CRCL) conducted tests, and the respondents requested retesting by the Indian Institute of Technology (IIT), which was denied by the authorities. The Adjudicating Authority relied on guidelines and circulars, concluding that the CRCL test was fair and reasonable, with the ability to distinguish between textured and non-textured yarn without the need for special equipment. The Revenue contended that in cases of disputed chemical analysis, reference should be made to the Chief Chemist at CRCL for retesting, as per the Appraising Manual and Tribunal decisions. The Adjudicating Authority followed the Harmonised System of Nomenclature (HSN) classification to determine the nature of the yarn, disregarding the IIT report. As the respondents did not comply with the retesting directive by CRCL and the CRCL report contradicted the respondents' claims, the Adjudicating Authority upheld the differential duty imposition based on the Revenue's classification under specific tariff headings. Since the respondents did not challenge the original order or appear to oppose the appeal, the Tribunal found no reason to keep the matter pending. Following the Apex Court's decision cited by the Revenue and considering the differential duty recoverable, the Tribunal upheld the imposition of a redemption fine of Rs. 10 lakhs, modifying the original order to that extent while allowing the Revenue's appeal. The judgment emphasizes adherence to established guidelines, reliance on official testing facilities, and the imposition of fines in cases of mis-declaration and confiscation.
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