2004 (3) TMI 297 - AT - Customs

Summary

Issues:
1. Confiscation of exported goods and imposition of redemption fine.
2. Imposition of penalty under Section 114(iii) of the Customs Act, 1962.

Confiscation of Exported Goods and Imposition of Redemption Fine:
The appeal was against an Order-in-Original confirming a demand, confiscating goods valued at Rs. 24,57,945, and imposing a redemption fine of Rs. 4.50 lakhs. The appellant claimed a clerical mistake in the shipping bill, arguing that the goods were already exported and not available for confiscation. The appellant relied on various judgments, including Prudential Pharmaceuticals Ltd. v. CC and IGP Engineers Pvt. Ltd. v. CC, to support their case. The Revenue contended misdeclaration in the shipping bill to claim a higher drawback amount, citing the judgment in Om Prakash Bhatia v. CC, Delhi. The Tribunal considered the submissions and held that exported goods not available for confiscation cannot be confiscated, setting aside the order of confiscation and redemption fine. The Tribunal distinguished cases where goods were released on bond and found no mala fide in the present case, terming the mistake a clerical error and ruling out penalty imposition.

Imposition of Penalty under Section 114(iii) of the Customs Act, 1962:
The appellant argued against the penalty imposition under Section 114(iii) of the Customs Act, 1962, citing judgments like Ram Khazana Electronic v. CC and DCW Ltd. v. ACCE, Tuticorin. The Revenue contended that the judgment in DCW Ltd. v. ACCE, Tuticorin did not apply due to the alleged misdeclaration for a higher drawback amount. The Tribunal considered the arguments and found that since the goods were not available for confiscation, no penalty could be imposed under Section 114(iii) of the Customs Act, 1962. Relying on precedents and distinguishing cases where redemption fines were imposed, the Tribunal set aside the penalty imposition along with the order of confiscation and redemption fine. The appeal was partly allowed, providing consequential relief as appropriate.