2009 (9) TMI 39 - HC - Customs

Who is the importer held that - once the goods were freely importable, it is immaterial as to who first sought to import the goods as long as the goods were cleared according to law - Section 125 of the Act permits the authority to redeem the goods on payment of fine either to the owner or the persons in possession - In the instant case, the very fact that the goods were redeemed by the three persons, who filed the Bills of Entry, would by itself warrant the conclusion that those three persons claimed right in the goods. Even otherwise, those three persons can be said to be the other persons and therefore the Assessing Officer was right in permitting the said three persons to pay the redemption fine and release the goods.

Summary

The High Court of Bombay was asked to determine whether the Central Excise, Gold and Silver Tax Appellate Tribunal (CEGAT) was correct in designating Shri Biren Shah and Naresh Modi as the importers of goods, despite the fact that the documents of import were in the name of M/s Leela Scottish Pvt. Ltd. The case involved 16 consignments imported by M/s Leela Scottish P. Ltd., which were disclaimed and subsequently seized. The applicants admitted to contravening the Import Policy and Customs Act, 1962, and agreed to pay import duty. The Assessing Officer ordered the confiscation of the consignments under section 111(o) of the Customs Act, with an option to redeem them on payment of a redemption fine and duty. The Revenue appealed the decision, arguing that the goods were imported by M/s Leela Scottish Lace P. Ltd. and should not have been redeemed by the other parties. The Tribunal dismissed the appeal, stating that the goods were freely importable and could be cleared by the subsequent parties who paid the duty and redemption fine. The High Court agreed, emphasizing that the antecedents to evade customs duty were irrelevant as long as the goods were cleared according to law. The court rejected the Revenue's application, concluding that the questions raised were not applicable to the case. The judgment highlights the importance of following legal procedures for clearing goods and paying duties, regardless of the initial importers involved.