2021 (3) TMI 1165 - AT - Customs

Deletion of redemption fine - re-export of goods - HELD THAT - Under similar circumstances, the Tribunal has deleted the redemption fine imposed on the assessee in a number of case - In the case of M/S. ROSE MARY INTERNATIONAL VERSUS COMMISSIONER OF CUSTOMS, TUTICORIN 2020 (6) TMI 262 - CESTAT CHENNAI , it was held that the redemption fine imposed for re-export of the goods cannot sustain and requires to be set aside - thus, the redemption fine charged under Section 125(1) of the Customs Act, 1962 is unsustainable. Levy of penalty under Section 112 (a) of the Customs Act, 1962 - HELD THAT - A proportionate penalty of ₹ 1,25,000/- is confirmed as against ₹ 5 Lakhs, following he above mentioned decision. Appeal allowed in part.

Summary

Issues:
1. Confiscation of imported cargo due to non-compliance with food safety standards.
2. Imposition of redemption fine and penalty under the Customs Act, 1962.

Detailed Analysis:
Issue 1: The appellant imported maize of Myanmar origin, but the Food Safety and Standards Authority of India rejected the clearance due to non-compliance with aflatoxin standards. The Adjudicating Authority ordered confiscation of the cargo under Section 111 (d) of the Customs Act, 1962. The appellant was given the option to pay a fine of ?10,00,000 in lieu of confiscation for re-export and was also penalized with ?5,00,000 under Section 112 (a) of the Customs Act, 1962. The appeal against this order was rejected by the Commissioner of Customs and Central Excise, leading to the current appeal.

Issue 2: During the hearing, the Tribunal considered previous cases where redemption fines imposed on importers were deleted. Citing a specific case, the Tribunal noted that redemption fines for re-export of goods were unsustainable. Consequently, the redemption fine charged under Section 125(1) of the Customs Act, 1962 was deleted. Regarding the penalty under Section 112 (a) of the Customs Act, 1962, the Tribunal upheld a proportionate penalty of ?1,25,000 instead of the original ?5,00,000. The final decision modified the impugned order by setting aside the redemption fine and reducing the penalty amount.

In conclusion, the Tribunal partially allowed the appeal by setting aside the redemption fine and modifying the penalty amount. The judgment provided a detailed analysis of the issues surrounding the confiscation of imported cargo and the imposition of fines and penalties under the Customs Act, 1962, ensuring compliance with food safety standards and legal provisions.