2017 (1) TMI 1541 - AT - Customs

Import of restricted item - Rough Marble Blocks - confiscation - Held that - Since, the importer failed to submit a valid import license, the goods are liable for confiscation under Section 111(d) of the Customs Act. However, the imported goods have already been disposed of by Customs Authorities since the importer has failed to clear the same within a reasonable period of time. Since, the goods are no longer available, the same cannot also be redeemed by the appellant-importer. Consequently, there is no question of payment of redemption fine as well as Customs duties. The importer will be entitled to receive the part of sale proceed received by the Customs at the time of auction of imported goods, subject to the Rules and regulation in this regard - appeal disposed off.

Issues: Import of restricted goods without a valid license, confiscation of goods under Customs Act, imposition of redemption fine and penalty, disposal of goods by Customs authorities, sharing of sale proceeds with importer.

Analysis:
The appeal before the Appellate Tribunal CESTAT New Delhi was directed against the Order-in-Appeal passed by the Commissioner Appeals (Customs) IGI Airport, New Delhi. The appellant had imported "Rough Marble Blocks," classified under CTH 2515, which were restricted goods at the time of import. The appellant failed to file a Bill of Entry for clearance of the imported goods, leading to Customs authorities auctioning and disposing of the goods. The Original Authority ordered the confiscation of the imported goods under Section 111(d) of the Customs Act, 1962, and imposed a redemption fine of ?4 lakhs under Section 125 of the Act, along with a penalty of ?1,50,000 under Section 112. The Commissioner (Appeals) upheld the order-in-original, prompting the filing of the present appeal.

During the hearing, the appellant's counsel argued that Customs disposed of the goods through auction despite being informed of the ongoing appeal, and the sale proceeds were not shared with the appellant. The Departmental Representative reiterated the decisions of the lower authorities. The Tribunal observed that the imported goods, being restricted items requiring an import license, were liable for confiscation under Section 111(d) of the Customs Act due to the importer's failure to provide a valid license. The order of confiscation was deemed appropriate, and the redemption fine and penalty were considered reasonable given the circumstances.

Since the imported goods had already been disposed of by Customs authorities due to the importer's failure to clear them within a reasonable timeframe, the Tribunal ruled that the goods could not be redeemed by the appellant. However, the importer was entitled to claim a portion of the sale proceeds from the auction, subject to relevant regulations. The penalty imposed could be deducted from the sale proceeds. The appeal was disposed of with these decisions, emphasizing that the importer could claim the sale proceeds from Customs authorities in accordance with the rules.

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