2011 (2) TMI 602 - CGOVT - Customs

Revision application - Government notes that procedure for application of sale proceed of goods is clearly defined under Section 150 of the Custom Act, 1962 and the sale proceeds have to be distributed according this Section 150 sub-section (2) ibid - The provisions of this section requires the duty clause (c) of subsection 150(2) and redemption fine clause (e) of sub section 150(2) to be adjusted from the sale proceeds before paying the remainder (refund) to the party - Therefore, the grounds of revision application taken by the applicant are not tenable - Government finds no infirmity in impugned order-in-appeal and order-in-original and therefore the same are upheld - The revision application is therefore rejected being devoid of merit.

Summary

Issues:
1. Confiscation and redemption of goods
2. Disposal of goods without notice
3. Refund application and deduction of dues
4. Appeal against refund order

Confiscation and redemption of goods:
The applicant brought assorted memory cards and electronic goods, which were later revalued. The impugned goods were confiscated, but an option for redemption was given upon payment of a fine and penalty. The department disposed of the goods without serving a notice to the applicant. A revision application was filed, and the Government ordered the return of the money value of the goods to the applicant.

Disposal of goods without notice:
The Joint Secretary observed that the goods were disposed of without serving a notice to the applicant, and the sale proceeds were retained by the department. As a result, the Government ordered the department to return the money value of the goods to the applicant after deducting applicable dues as per law.

Refund application and deduction of dues:
The applicant filed a refund application to the Assistant Commissioner of Customs, requesting the balance amount from the sale proceeds after deducting applicable dues. An amount was sanctioned as a refund to the applicant, but the applicant appealed against the order, arguing that the deduction of duty, redemption fine, and penalty was incorrect as per the revisional order.

Appeal against refund order:
The applicant appealed before the Jurisdictional Commissioner of Customs, who rejected the appeal. The applicant then filed a revision application, contending that the refund should be granted from the CIF value of goods after deducting penalties, and interest should be provided for delayed refund. However, the Government upheld the impugned order-in-appeal and order-in-original, stating that the adjustment of duty and redemption fine from the sale proceeds was in accordance with the Custom Act, 1962.

In conclusion, the revision application was rejected for lacking merit, and the impugned orders were upheld by the Government.