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2014 (11) TMI 112 - AT - CustomsMisdeclaration of goods - Confiscation of goods - Held that - Larger Bench of this Tribunal in the case of Shiv Kripa Ispat Pvt. Ltd. vs. Commissioner of Central Excise, Nasik 2009 (1) TMI 124 - CESTAT MUMBAI held that if the goods were allowed to be exported without executing any bond or the goods are not available for confiscation, in that situation redemption fine cannot be imposed. Admittedly, in this case, despite repeated letters the Revenue has failed to produce the evidence as to whether the subject-goods were cleared for export under bond. Therefore, I come to the conclusion that the goods in question were allowed to be cleared for export without furnishing any bond. In these circumstances, although the goods are liable for confiscation, no redemption fine can be imposed in the light of the decision in the case of Shiv Kripa Ispat Pvt. Ltd. (supra). In view of the above, the redemption fine is set aside - Decided in favour of assessee.
Issues: Appeal against redemption fine in export case.
Analysis: 1. Background: The appellant challenged a redemption fine of Rs. 8,00,000 imposed due to misdeclaration of goods during export. The High Court remanded the matter to the Tribunal for reconsideration. 2. Facts: The appellant exported manmade fabrics with misdeclared GSM values without executing any bond. The Tribunal reduced the fine to Rs. 6,00,000 as no bond was executed before export. The High Court remanded the case for further review. 3. Legal Precedent: Referring to the case of Shiv Kripa Ispat Pvt. Ltd. vs. Commissioner of Central Excise, the Tribunal noted that if goods are exported without a bond or are not available for confiscation, a redemption fine cannot be imposed. The Revenue failed to provide evidence of bond execution for the subject goods. 4. Decision: The Tribunal concluded that the goods were cleared for export without a bond, following the precedent set by Shiv Kripa Ispat Pvt. Ltd. As a result, despite the goods being liable for confiscation, the redemption fine of Rs. 6,00,000 was set aside. The appeal was disposed of accordingly.
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