2009 (9) TMI 1013 - HC - Customs

Whether in the facts and circumstances of the case and in law the CESTAT is right in dismissing the appeal of Revenue and holding that no redemption fine can be imposed and penalty levied when the goods are physically not available for confiscation? Held that - as the goods are not available for confiscation no redemption fine can be imposed - before the Tribunal the issue of penalty was not at all involved. We find that no substantial question of law is involved - appeal dismissed - decided partly in favor of assessee.

Summary

The Bombay High Court considered whether a redemption fine and penalty could be imposed when goods are not available for confiscation. The court held that no redemption fine can be imposed in such cases. The penalty was reduced from Rs. 60,000 to Rs. 5,000 by the Commissioner of Customs, and the court found no substantial question of law involved, thus dismissing the appeal. The court clarified that it is not concerned with whether a penalty can be imposed when a redemption fine cannot be imposed.