2010 (7) TMI 325 - HC - Customs

Waiver of redemption fine - goods are not available, there is no question of redemption of the goods - order can only be passed if the goods are available, for redemption - Held that - goods cannot be redeemed no fine can be imposed - fine is in the nature of compensation to the state for the wrong done by the importer/exporter - appeals are dismissed

Summary

Issues:
1. Interpretation of the concept of redemption fine in customs law.
2. Waiver of redemption fine when goods are not available.
3. Authority of Customs Authorities to order confiscation of goods.
4. Imposition of fine as compensation for wrong done by importer/exporter.
5. Waiver of fine on Customs House Agent (CHA) and Exporter.
6. Reduction of penalty on the Steamer Company.
7. Determination of substantial question of law.

Analysis:
1. The judgment addressed the interpretation of the concept of redemption fine in customs law. The Court emphasized that redemption fine is applicable when goods are available for redemption. If the goods are not available, there can be no redemption, and consequently, no fine can be imposed. The fine is viewed as compensation to the state for the wrong committed by the importer/exporter.

2. Regarding the waiver of redemption fine when goods are not available, the Court highlighted that under Section 125, Customs Authorities have the power to order confiscation of goods if import becomes prohibited due to a breach of laws. The discretion to release goods on payment of redemption fine is only applicable when the goods are available for redemption. If goods cannot be redeemed, no fine can be imposed.

3. The judgment also discussed the authority of Customs Authorities to order confiscation of goods in case of a breach of customs laws. The Court clarified that the power to confiscate goods and impose fines is contingent upon the availability of goods for redemption. If goods are not available, the question of confiscation and redemption does not arise.

4. In the context of imposing fines as compensation for wrongs committed by importers/exporters, the Court reiterated that fines serve as compensation to the state for violations of customs laws. The judgment emphasized the importance of considering the availability of goods for redemption before imposing fines.

5. The Court considered the waiver of fines on the Customs House Agent (CHA) and Exporter. The judgment upheld the Tribunal's reasoning, stating that the decision was reasonable and justified. Consequently, the Court found no substantial question of law involved and dismissed the appeals without costs.

6. Additionally, the judgment addressed the reduction of penalties on the Steamer Company. The Court agreed with the Tribunal's reasoning, deeming it reasonable and valid. As a result, the Court concluded that no substantial question of law was raised, leading to the dismissal of the appeals without costs.

7. In the final analysis, the Court determined that no substantial question of law was involved in the issues presented. The judgment affirmed the decisions of the Tribunal regarding the waiver of fines and reduction of penalties, ultimately dismissing the appeals without costs.