2009 (3) TMI 96 - HC - Customs

Whether an exporter, who has been held guilty of exporting prohibiting goods should be allowed to have the goods redeemed upon payment of fine and penalty Tribunal is right in taking lenient view, allowing redemption of the confiscated sandal wood valued at Rs.64.00 lakhs on a fine of Rs.8.00 lakhs only held that tribunal has the right to pass such order by giving an option to pay fine in lieu of confiscation the discretion as exercised by the Tribunal for awarding the penalty in favour of the respondent firm as well as for the partners, we feel such discretion which has been specifically dealt with by the authority the Tribunal should not have any authority to sit on appeal on the said question appeal is, therefore, partly allowed

Summary

The High Court of Calcutta heard an appeal against an order from the Customs, Excise and Service Tax Appellate Tribunal, Kolkata. The case involved a partnership firm that legally purchased sandalwood from the Karnataka State Government Forest Department for export. The sandalwood was seized by customs authorities during an export attempt. The Tribunal ordered the redemption of the confiscated sandalwood, imposing a fine and a penalty. The Department appealed, questioning the release of prohibited goods for export and the penalty amount. The Court examined the Foreign Trade (Development and Regulation) Act, 1992, and the Customs Act to determine whether the Tribunal's decision was valid. The Court upheld the redemption of the sandalwood and the penalty imposed on the firm and partner, but disagreed with the Tribunal's reduction of the penalty amount. The Court ordered the release of the goods upon payment of the directed amount within six weeks. The appeal was partly allowed, and the questions raised were not addressed separately. All parties were instructed to act on a signed copy of the order. An urgent certified copy of the order would be provided upon request.