2009 (1) TMI 149 - AT - Customs

Non-declaration of jewellery and foreign currency assessee plea is that neither jewellery nor foreign currency was a prohibited item therefore adjudicating authority, instead of absolutely confiscating the goods, should have given an option to redeem the same - there is only a technical violation of non-declaration & matter stands remanded once, we allow the appellant to redeem the goods totally valued at Rs. 20.44 lakhs on payment of redemption fine of Rs. 2.50 lakhs - penalty of Rs. 1 lakh is not being interfered lot of time elapsed since original confiscation, early hearing application is allowed

Summary

Issues:
1. Redemption of confiscated goods on payment of redemption fine.

Analysis:
The judgment by the Appellate Tribunal CESTAT MUMBAI involved the issue of redemption of confiscated goods on payment of redemption fine. The appellant did not dispute the findings of the original adjudicating authority on the non-declaration of jewellery and foreign currency but contested that these items were not prohibited, and the charge was only for non-declaration. The appellant argued that instead of absolute confiscation, they should have been given the option to redeem the goods on payment of a redemption fine. The Tribunal agreed with the appellant's contention, stating that the law on the issue was settled, and the appellant should be allowed to redeem the goods. The Tribunal noted that there was only a technical violation of non-declaration and decided to fix the redemption fine without remanding the matter to the Commissioner for further proceedings.

The Tribunal allowed the appellant to redeem the goods valued at Rs. 20.44 lakhs by paying a redemption fine of Rs. 2.50 lakhs. The Tribunal considered the penalty of Rs. 1.00 lakh while fixing the redemption fine. The judgment converted the absolute confiscation into an option for redemption, granting relief to the appellant in this regard. However, apart from allowing the redemption of goods, the appeal was rejected on other grounds. The Tribunal disposed of the early hearing application, concluding the judgment with the pronouncement in court. The decision provided a detailed analysis of the legal principles involved in allowing the redemption of confiscated goods on payment of a redemption fine, emphasizing the importance of considering the specific circumstances of the case and the nature of the violation in such matters.