2018 (4) TMI 1651 - CGOVT - Customs

Quantum of redemption fine and penalty - Smuggling or not - Gold - case of applicant is that they had brought the gold for self-use only from Abu Dhabi without any concealment - Held that - The applicant does not dispute the Commissioner (Appeals) s order regarding confiscation of the gold which were brought by him illegally from Abu Dhabi in violation of Customs Act and the Foreign Trade (Development and Regulation) Act, 1992 - As regards redemption fine and penalty imposed by the Commissioner (Appeals) in his order, the applicant has not advanced any convincing reason for reduction of fine and penalty and it is merely stated that redemption fine should not be more than the margin of profit. However, the Government does not agree with this contention as the redemption fine is in lieu of the value of confiscated goods which is vested with Government on confiscation of goods and, therefore, value of the confiscated goods is relevant for determination of redemption fine and not the margin of profit. The revision application is rejected.

Summary

Issues:
1. Revision application against Order-in-Appeal for redemption of confiscated gold and penalty.
2. Dispute over redemption fine and penalty imposed by Commissioner (Appeals).
3. Applicant's argument for reduction of redemption fine and penalty.
4. Government's stance on the relevance of confiscated goods' value for determining redemption fine.

Analysis:
1. The judgment pertains to a Revision Application filed against an Order-in-Appeal allowing redemption of confiscated gold on payment of a fine and penalty. The applicant contested the high redemption fine and personal penalty imposed by the Commissioner (Appeals) after the gold was confiscated for being illegally imported from Abu Dhabi.

2. The applicant argued that the redemption fine and penalty were excessive considering the circumstances of bringing the gold for personal use without concealment. The Commissioner's order for confiscation was not disputed, and the applicant sought a reduction in the fine and penalty during a personal hearing where the respondent, an Air Customs Officer, supported the Order-in-Appeal.

3. The applicant's plea for reducing the redemption fine and penalty was based on the assertion that the fine should not exceed the profit margin. However, the Government disagreed, emphasizing that the redemption fine is determined based on the value of the confiscated goods, not the profit margin. The applicant's argument, if accepted, would lead to no redemption fine for illegally imported goods without a profit margin, which was deemed unreasonable.

4. The Government rejected the revision application, upholding the Commissioner (Appeals)'s decision on the redemption fine and penalty. It was clarified that the value of the confiscated goods is crucial in determining the redemption fine, as it represents the amount vested with the Government upon confiscation. Therefore, the argument advocating a reduction based on profit margin was deemed untenable, leading to the dismissal of the revision application.