2010 (7) TMI 1052 - HC - Customs

Summary

Issues involved: Interpretation of redemption fine u/s 125 of Customs Act, waiver of redemption fine, waiver of fine on CHA and Exporter, reduction of penalty on Steamer Company.

Interpretation of redemption fine u/s 125 of Customs Act:
The High Court held that the concept of redemption fine arises only when the goods are available for redemption. If the goods are not available, there can be no redemption of the goods. The Court emphasized that u/s 125 of the Customs Act, the Customs Authorities have the power to order confiscation of goods with the discretion to release the goods on payment of redemption fine, but this can only be done if the goods are available for redemption. The Court clarified that if goods cannot be redeemed, no fine can be imposed, as the fine serves as compensation to the state for the wrong committed by the importer/exporter.

Waiver of redemption fine:
The Court dismissed the appeal regarding the waiver of redemption fine, stating that the Tribunal's decision was in line with the judgment of the Court in a previous case. The Court reiterated that redemption fine can only be imposed when goods are available for redemption, and if there are no goods available, confiscation and consequently redemption cannot occur.

Waiver of fine on CHA and Exporter, reduction of penalty on Steamer Company:
Regarding the waiver of fine on CHA and Exporter, as well as the reduction of penalty on the Steamer Company, the Court upheld the Tribunal's reasons and deemed them reasonable and valid. The Court found no substantial question of law involved in this matter and therefore dismissed all appeals with no order as to costs.

This judgment clarifies the conditions under which redemption fine can be imposed u/s 125 of the Customs Act and emphasizes the necessity of goods being available for redemption before such a fine can be levied. The Court's decision regarding the waiver of fines and reduction of penalties was based on the reasonableness of the Tribunal's views, highlighting the importance of considering all relevant factors in such cases.