2014 (9) TMI 235 - SC - Customs

Refund of redemption fine deposited earlier - Confiscation of goods - non release of goods despite deposit of redemption fine - goods were not released on the ground that the appellant has to pay the customs duty. - appellant is not in a position to pay the customs duty and, therefore, he is not desirous of redeeming the goods. - Held that - revenue shall refund the amount of ₹ 9.50 lacs to the appellant within eight weeks from today. Needless to say that the goods shall remain confiscated under Section 111(d) of the Act and the authority shall be free to take appropriate action in accordance with law in this regard. - Decided in favor of assessee.

Summary

Issues:
1. Appellant's challenge to the order of Commissioner of Customs regarding redemption of confiscated goods.
2. Tribunal's decision in favor of the appellant.
3. High Court's judgment setting aside the Tribunal's order.
4. Appellant's deposit of redemption fine and subsequent refusal to pay customs duty.
5. Request for refund of the redemption fine.
6. Supreme Court's direction for refund and retention of confiscated goods.

Analysis:
1. The Commissioner of Customs issued an order allowing the appellant to redeem 219 confiscated ball bearings by paying a fine of &8377; 9.50 lacs under Section 125 of the Customs Act, 1962. The appellant was given a month to decide.
2. The appellant contested this order before the Tribunal, which ruled in favor of the appellant, granting relief from the redemption conditions imposed by the Commissioner.
3. The Revenue challenged the Tribunal's decision in the High Court, which overturned the Tribunal's order, reinstating the Commissioner's conditions for redemption. However, the High Court permitted the appellant to redeem the goods as per the original order.
4. Following the High Court's judgment, the appellant deposited the redemption fine but faced a hurdle as the goods were not released due to pending customs duty payment. The appellant expressed inability to pay the customs duty and sought a refund of the deposited amount.
5. The Additional Solicitor General agreed with the appellant's request for a refund of the redemption fine since the goods were not released to the appellant due to the customs duty issue.
6. The Supreme Court disposed of the appeal by directing the revenue to refund the &8377; 9.50 lacs to the appellant within eight weeks. The Court clarified that the confiscated goods would remain seized under Section 111(d) of the Act, allowing the authority to take further legal actions as deemed necessary. No costs were awarded in this matter.