2011 (8) TMI 624 - AT - Customs

Confiscation of Off Road Refueling Truck ATZ with accessories as the same were confiscated violation of the Foreign Trade Policy - Assessee challenged adjudication order revenue aggrieved no redemption fine is imposed - Assessee furnished Director General of Foreign Trade has relaxed the condition - Held That - letters were not before the adjudicating authority and relaxation was subsequent to the order of adjudicating authority. Thus case remanded back.

Summary

Issues:
1. Confiscation and penalty imposed on imported goods in violation of Foreign Trade Policy.
2. Challenge to adjudication order by the importer and appeal by the Revenue.
3. Relaxation of conditions by the Director General of Foreign Trade post adjudication order.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Mumbai, involved the confiscation and penalty imposed on an 'Off Road Refueling Truck ATZ' imported in violation of the Foreign Trade Policy. The adjudicating authority had ordered the confiscation of the truck with accessories and imposed a penalty of Rs. 3 lakhs. M/s. Nagarjuna Construction Co. Limited, the importer, challenged the adjudication order, while the Revenue also filed an appeal stating that although confiscation was ordered, no redemption fine was imposed.

The importer contended that subsequent to the adjudication order, the Director General of Foreign Trade relaxed the conditions under Import Licensing Note of Chapter 87 through letters dated 24/03/2011 and 29/07/2011, which were not before the adjudicating authority. The Tribunal noted that the importer had produced these letters post the adjudication order, leading to the conclusion that the matter required reconsideration by the adjudicating authority. The Tribunal ruled that the impugned order was not sustainable in light of the relaxation of provisions by the Director General of Foreign Trade and remanded the matter to the adjudicating authority for fresh consideration, allowing both parties to produce evidence in support of their contentions.

In conclusion, the Appellate Tribunal CESTAT, Mumbai, set aside the impugned order, remanding the matter to the adjudicating authority for a fresh decision after considering the letters issued by the Director General of Foreign Trade. The judgment emphasized the importance of affording a reasonable opportunity of hearing to the appellant-importer and the need for both parties to present evidence in support of their arguments. The appeals were disposed of by way of remand, ensuring a fair reconsideration of the issues involved.