9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (11) TMI 99 - AT - CustomsImposition of condition of re-export for redeeming the goods - Whether adjudicating authority was correct in imposing the condition of re-export while allowing the goods to be redeemed on payment of redemption fine? Held that - Section 125 of the Customs Act 1962 has been considered by the larger bench of Tribunal in case of A K Jewellers 2003 (6) TMI 31 - CESTAT, NEW DELHI , where it was held that When an adjudicating authority after ordering confiscation of imported goods permits their re-export, he is in effect first ordering the redemption of the goods on payment of fine and thereafter permitting them to be reexported. Each of these two actions is independent and is permitted by law. An order whereby both are combined, therefore, is not contrary to law. Thus, we are not in position to uphold the order of the lower authorities whereby a condition of re-export has been imposed in the proceedings of confiscation under Section 125 of the Customs Act, 1962 - we modify the orders of the adjudicating authority to delete the condition of re-export imposed by him, and allow the appeal of party to the extent of such modification.
Issues Involved:
1. Confiscation of goods under Section 111(d) of the Customs Act, 1962. 2. Imposition of redemption fine under Section 125 of the Customs Act, 1962. 3. Imposition of penalty under Section 112(a) of the Customs Act, 1962. 4. Legality of the condition of re-export imposed by the adjudicating authority. Issue-wise Detailed Analysis: 1. Confiscation of Goods under Section 111(d) of the Customs Act, 1962: The Joint Commissioner of Customs ordered the confiscation of goods imported under two separate Bills of Entry, citing Section 111(d) of the Customs Act, 1962. The goods were declared with assessable values of ?8,38,950/- and ?51,55,575/-, respectively. The confiscation was upheld by the Commissioner (Appeals). 2. Imposition of Redemption Fine under Section 125 of the Customs Act, 1962: The adjudicating authority provided the importer an option to redeem the confiscated goods for re-export upon payment of a redemption fine of ?1,00,000/- for each consignment. The appellant contested the imposition of the re-export condition, arguing that Section 125 does not authorize such a condition. The Tribunal referred to the legal provisions and past judgments, concluding that Section 125 does not allow imposing conditions for redemption other than the payment of the fine. The Tribunal cited cases like "A K Jewellers" and "Hemant Bhai R Patel," which clarified that while the adjudicating authority can impose a redemption fine, it cannot dictate the manner in which the redeemed goods should be dealt with post-redemption. 3. Imposition of Penalty under Section 112(a) of the Customs Act, 1962: A penalty of ?50,000/- was imposed on the importer under Section 112(a) of the Customs Act, 1962, for improper importation. The appellant sought the setting aside of this penalty. However, the Tribunal upheld the penalty, distinguishing it from the proceedings related to confiscation and redemption fine. The Tribunal emphasized that penalties for improper importation are independent of the redemption and re-export conditions. 4. Legality of the Condition of Re-export Imposed by the Adjudicating Authority: The primary contention of the appellant was against the condition of re-export for redeeming the goods. The Tribunal examined the legality of this condition under Section 125 of the Customs Act, 1962. The Tribunal noted that while the adjudicating authority has the power to impose a redemption fine, it cannot impose additional conditions such as re-export. The Tribunal referred to the larger bench's decision in "A K Jewellers" and other relevant cases, concluding that the condition of re-export is not supported by Section 125. The Tribunal modified the orders of the lower authorities to delete the re-export condition, allowing the importer to deal with the goods as they deem fit post-redemption. Conclusion: The Tribunal modified the orders of the adjudicating authority by removing the condition of re-export imposed under Section 125 of the Customs Act, 1962. The redemption fine and penalties imposed were upheld. The appeals were disposed of accordingly.
|
