2007 (10) TMI 15 - AT - Customs

Final order by Tribunal modified so as to enable the original authority to appropriate the redemption fine from the sale proceeds of goods and release the balance amount to the assessee Even Dept. disposed goods during pendency of appeal though application is allowed for ends of justice

Summary

Issues:
1. Modification of final order due to disposal of goods during appeal.
2. Consideration of redemption against payment of fine.
3. Valid challenge against confiscation and penalty.
4. Discretion of adjudicating authority in determining redemption fine.

Issue 1: Modification of final order due to disposal of goods during appeal
The Commissioner applied for modification of Final Order No. 498/07 as the goods were disposed of during the appeal. The Tribunal noted that the original order assumed the goods were available with the department, but they had been disposed of in February 2002. The Tribunal expressed disappointment that this fact was not brought to their attention earlier. They acknowledged the applicant's delayed awareness of the appeal but criticized the disposal of goods during the appeal, contrary to the law. Despite these observations, the Tribunal allowed the application for the sake of justice.

Issue 2: Consideration of redemption against payment of fine
The Tribunal detailed the case where the appellant was found in possession of smuggled goods, leading to confiscation and imposition of a penalty. The appellant sought redemption of the goods against payment of a fine, citing precedents and relevant provisions of the Customs Act. The Tribunal agreed that confiscation was justified but favored redemption of the goods. However, since the goods were already disposed of, they directed the adjudicating authority to determine a reasonable redemption fine from the sale proceeds, returning the balance to the appellant, following precedents and similar decisions in other cases.

Issue 3: Valid challenge against confiscation and penalty
Upon examining the records, the Tribunal found no valid challenge against the confiscation and penalty imposed. The appellant failed to provide evidence of lawful acquisition of the seized goods, and his delayed retraction of a confessional statement was disregarded. The Tribunal upheld the confiscation under Section 111(d) of the Customs Act, emphasizing the appellant's failure to prove licit acquisition and possession of the contraband.

Issue 4: Discretion of adjudicating authority in determining redemption fine
The Tribunal directed the original authority to determine the redemption fine to be paid by the appellant in lieu of confiscation. Emphasizing the need for a reasonable opportunity for the appellant to be heard, the Tribunal instructed the authority to realize the fine from the sale proceeds of the goods and return the balance to the appellant. The appeal was disposed of with these instructions, ensuring compliance with relevant provisions and past decisions.