2007 (2) TMI 82 - AT - Customs

Redemption fine and Penalty Appellant contended that as the goods were ordered to be re-export, the imposition of redemption fine and penalty are not sustainable Held that redemption fine and penalty sustainable alongwith AD duty of Rs.10 lakh

Summary

Issues:
- Imposition of redemption fine and penalty on re-exported goods.

Analysis:
The appellant challenged the imposition of redemption fine and penalty on re-exported goods. The appellant argued that since the goods were ordered to be re-exported, the imposition of redemption fine and penalty was not justified. The appellant relied on a decision by the Hon'ble Madras High Court to support their contention that redemption fine should not be imposed in case of re-export, and only penalty could be imposed. On the other hand, the Revenue cited Larger Bench decisions of the Tribunal to argue that the importer must first redeem the goods by paying the redemption fine before re-exporting them.

The Tribunal examined whether imported goods are liable for fine and penalty in the case of re-export after considering the arguments presented. The Tribunal referred to previous decisions, including one by the Hon'ble Supreme Court, and held that the power to levy a penalty for improper importation of goods is distinct from the power of confiscation of goods. The Tribunal also noted that the issue raised by the appellant had already been settled by the Hon'ble Supreme Court, which was not brought to the attention of the Hon'ble Madras High Court in a relevant case. Therefore, the Tribunal found no merit in the appellant's argument that the goods were not liable for redemption fine and penalty.

Furthermore, the appellant requested a reduction in the quantum of redemption fine and penalty, claiming no intention to evade duty payment. However, the Tribunal noted that the appellant had imported sun control/dust control film by declaring it as polyester film, which was subject to anti-dumping duty. The Tribunal calculated that the goods were liable for approximately Rs. 10 lakhs in anti-dumping duty, leading to the dismissal of the appeal without any reduction in the redemption fine and penalty amount.

In conclusion, the Tribunal upheld the imposition of redemption fine and penalty on the re-exported goods, emphasizing the distinction between penalty for improper importation and confiscation of goods. The appeal was dismissed, and the appellant's request for a reduction in the quantum of fine and penalty was rejected.