2009 (10) TMI 703 - AT - Customs

Summary

Issues involved: Appeal against granting option to redeem goods on payment of redemption fine under Customs Act for attempted smuggling of buffaloes near border.

Issue 1: Classification of goods as prohibited or not
The Revenue contended that buffaloes are prohibited goods under Export-Import Policy and Notification No. 03(RE 2003)/2002-2007. However, the Commissioner (Appeals) held that buffaloes are not restricted goods. The Tribunal analyzed Section 125 of the Customs Act which distinguishes between import/export of prohibited goods and other goods. It was noted that the Act allows for redemption of confiscated prohibited goods upon payment of redemption fine. As the value of the buffaloes was Rs. 18,800 and a redemption fine of Rs. 4,000 was imposed, the Tribunal found no issue with the impugned Order.

Decision:
The Tribunal dismissed the Appeal, upholding the Commissioner (Appeals) decision to grant the option to redeem the buffaloes on payment of the redemption fine, as there was no prohibition in the Act for such redemption of prohibited goods.