2014 (1) TMI 1067 - AT - Customs

Confiscation of goods - Imposition of redemption fine - Held that - Section 125 of the Customs Act authorizes confiscability of the goods. Once there is a confiscation of goods without being absolutely confiscated, redemption fine ought to have been imposed in lieu of confiscation and option was required to be given to the importer of the goods to pay such fine and redeem the goods so confiscated. Learned Commissioner was of the view that when the respondent deposited duty, there should not be redemption fine. Such a proposition is not sanction of law. Quantum of such fine depends on various factors and judiciously determined. Therefore, there is no escaping conclusion that redemption fine is not imposable - redemption fine of Rs. 25,000/- is imposed to reduce the litigation of 2007 - Decided partly in favour of Revenue.

Summary

The Appellate Tribunal CESTAT BANGALORE ruled that redemption fine was not imposable when goods were held confiscable, but a penalty of Rs. 50,000 was upheld. The respondent did not appeal, and a redemption fine of Rs. 25,000 was imposed to reduce litigation. The decision partly allowed the revenue's appeal.