2011 (12) TMI 645 - AT - Customs

Summary

Issues involved: The judgment involves the issue of import of goods without the required license under Rule 23 of the Drugs and Cosmetics Rules, 1945, leading to confiscation under section 111(d) of the Customs Act, 1962. The subsequent request for re-export of the goods and the imposition of redemption fine and penalty are also at the core of the case.

Import of Goods without License:
The respondent imported goods valued at Rs. 42,34,481.37 without the necessary import license in violation of Rule 23 of the Drugs and Cosmetics Rules, 1945. This non-compliance rendered the goods liable for confiscation under section 111(d) of the Customs Act, 1962. The request for re-export was made after the goods could not be released due to the absence of the required license.

Adjudication and Appeal:
The adjudicating authority initially allowed re-export on payment of a redemption fine of Rs. 5 lakhs and a penalty of Rs. 2 lakhs. Subsequently, the Commissioner (Appeals) reduced the redemption fine to Rs. 25,000 and the penalty to Rs. 75,000, citing lack of deliberate attempt to import without the required license and absence of mens rea. The reduction was based on the finding that there was no mis-declaration and no foreign exchange involved.

Revenue's Appeal:
The Revenue appealed against the reduction of the redemption fine and penalty. However, the Appellate Tribunal found no valid reason presented by the Revenue for enhancement. It was noted that there was no malafide intent on the part of the importer, and the need for re-export arose due to the inability to obtain the necessary license. The Tribunal upheld the decision of the Commissioner (Appeals) to reduce the fine and penalty, ultimately rejecting the Revenue's appeal.

Conclusion:
The Tribunal rejected the Revenue's appeal, affirming the reduction of the redemption fine and penalty by the Commissioner (Appeals). The judgment highlights the importance of compliance with licensing requirements for imports and considers lack of mens rea in determining the appropriate penalties.