2010 (2) TMI 1207 - HC - Customs

Summary

Issues Involved:
The validity of the order passed by the Tribunal challenging the confiscation of goods and imposition of redemption fine u/s 111(d) of the Customs Act, 1962.

Summary:
Issue 1:
The Appellant/Commissioner of Customs challenged the Tribunal's order dated 10.09.2004 setting aside the confiscation of goods and redemption fine imposed on the Respondent. The substantial questions of law considered were whether the violation of import conditions rendered the goods liable for confiscation u/s 111(d) and whether setting aside the OrderinOriginal was justified.

Facts:
The Respondent imported Defective/Secondary Hot Rolled Coils below the floor price fixed by the Ministry of Commerce, leading to allegations of contravention of the Customs Act. The Respondent argued that the import was in good faith based on pre-existing contracts and market prices, attempting to cancel the contract post-notification changes.

Issue 2:
The Revenue contended that the import violated ITC notification restrictions, making the goods liable for confiscation u/s 111(d). The Respondent argued that the contract was genuine and bonafide, entered into before policy changes, and attempted to cancel it post-notification.

Consideration:
The Commissioner found the contract genuine in the OrderinOriginal, but the Tribunal set aside conflicting parts and upheld the bonafide nature of the contract. As the Revenue did not challenge the original order, the Tribunal's decision favoring the Respondent was upheld, dismissing the appeal.

This judgment highlights the importance of genuine contracts and good faith in import transactions, emphasizing the need for legal clarity and adherence to import policies to avoid confiscation and fines under the Customs Act, 1962.