2009 (9) TMI 792 - AT - Customs

Summary

Issues:
- Appeal against confiscation of impugned goods and imposition of penalty.
- Legality of confiscation of foreign origin goods.
- Failure to produce documents regarding purchase of goods.
- Redemption Fine for release of goods.

Analysis:
The appeal was filed by the Revenue against an order setting aside the confiscation of impugned goods and imposition of a penalty. The Revenue contended that the goods were of foreign origin, purchased from Delhi, and the Respondent failed to produce any documents despite multiple opportunities. The Respondent argued that the goods were not prohibited under Section 123 of the Customs Act and should be released on payment of Redemption Fine if ordered to be confiscated.

The Tribunal noted that the Respondent admitted the goods were of foreign origin, purchased from Delhi, and undertook to produce purchase documents, which were never submitted. The Tribunal considered the precedent cited by the Revenue, where confiscation and penalty were upheld in a similar situation. Consequently, the Tribunal inferred that the goods were not legally imported into India, leading to the restoration of the order confiscating the goods and imposing a penalty. However, since the goods were not prohibited, the Respondent was given the option to redeem them by paying a Redemption Fine of Rs. 1.00 lakh.

In conclusion, the Tribunal allowed the appeal, reinstating the confiscation of the impugned goods and the penalty. The decision emphasized the importance of producing necessary documents for imported goods and highlighted the option of Redemption Fine for release in cases where goods are not prohibited.