2010 (1) TMI 990 - AT - Customs

Summary

Issues involved: Appeal against order of Commissioner (Appeals) regarding confiscation and penalty on Indian wheat seized near Nepal border.

Analysis:
1. Failure to Appear: The appellant failed to appear for the appeal despite multiple notices. The ld. SDR represented the respondent, and the records were examined.

2. Background and Confiscation: The seized Indian wheat, intended for illegal export to Nepal, was auctioned after being confiscated. The Original Authority and Commissioner (Appeals) upheld the confiscation and imposed a penalty on the individual claiming ownership.

3. Legal Interpretation: The judge noted that while the wheat was rightfully liable for confiscation due to illegal export intentions, the absence of any prohibition on wheat export to Nepal raised questions. Section 125 of the Customs Act allows redemption for non-prohibited goods, and the judge highlighted the discretionary nature of this provision.

4. Judgment: The judge concluded that while confiscation was justified, the sale proceeds should be released upon payment of a redemption fine of Rs. 30,000. The penalty imposed was deemed reasonable, and the appellant was eligible for a refund after deducting the redemption fine and penalty amounts.

5. Disposition: The appeal was disposed of with the decision to release the sale proceeds after payment of the redemption fine and penalty, providing a clear resolution to the confiscation and penalty issues raised in the appeal.