2009 (6) TMI 990 - AT - Customs

Confiscation - redemption fine - penalty u/s 114 (iii) on exporter, shipping line and CHA - quantum of -

Summary

Issues: Confiscation of goods, redemption fine under Section 125, penalty under Section 114

Confiscation of Goods and Redemption Fine under Section 125:
The Commissioner of Customs ordered the confiscation of goods covered by a shipping bill and allowed the exporter to redeem the goods on payment of a fine under Section 125 of the Customs Act. The Tribunal's Larger Bench decision in Shiv Kripa Ispat Pvt. Ltd. vs. CCE was cited, stating that no redemption fine could be imposed if the offending goods were not available for confiscation unless allowed to be cleared against a bond or undertaking. As the goods in this case were not physically available for confiscation and not cleared under any bond, the redemption fine was vacated following the Larger Bench decision.

Penalty under Section 114:
Evidence supported penalties imposed on the exporter, shipping line, and Customs House Agent (CHA) under Section 114 of the Act. The goods were exported without proper customs supervision, shipping bill, or "Let Export Order" from the customs officer. The exporter handed over the consignment to the CHA, who filed the shipping bill without completing customs procedures. The shipping line loaded the goods onto the vessel without proper customs clearance documentation. The Commissioner found that the actions of the exporter, CHA, and shipping line rendered the goods liable to confiscation under Section 113 for breaching Section 51 and other Customs Act provisions. It was clarified that actual confiscation of goods is not necessary for a penalty under Section 114 if the goods are liable to confiscation. The penalties imposed were deemed excessive, and the penalty amounts were reduced to Rs. 2,00,000 for the shipping line and Rs. 1,00,000 each for the exporter and CHA. The judgment upheld the penalties but adjusted the amounts based on the circumstances of the case.

Conclusion:
The judgment addressed issues related to the confiscation of goods, redemption fine under Section 125, and penalties under Section 114 of the Customs Act. It applied legal precedents to determine the appropriateness of the redemption fine and penalties imposed on the parties involved in the export process. The decision provided a detailed analysis of the legal provisions and actions of the exporter, CHA, and shipping line, ultimately adjusting the penalty amounts to be fair and reasonable based on the circumstances of the case.