2004 (12) TMI 137 - AT - Customs

Summary

Issues:
- Confiscation of mulberry raw silk and viscose rayon filament yarn
- Redemption fine and penalties imposed
- Liability of the importing firm and individuals involved

Confiscation of Goods:
The judgment revolves around the confiscation of fifty cartons of mulberry raw silk and 551 cartons of viscose rayon filament yarn. The Commissioner had confiscated the mulberry silk under various sections of the Customs Act and also confiscated the yarn used for concealing the silk. The Tribunal upheld the confiscation of the goods but allowed re-export of the mulberry silk on payment of a fine of Rs. 3.00 lakhs. The redemption fine for the yarn was reduced to Rs. 1.00 lakh.

Redemption Fine and Penalties:
The Tribunal addressed the penalties imposed on the importing firm and individuals. A penalty of Rs. 2.00 lakhs on the importing firm, M/s. Impex Enterprises, was reduced to Rs. 1.00 lakh. Additionally, a penalty of Rs. 3.00 lakh imposed on Akil Rassai was set aside as the necessary ingredients of the section were found to be absent. The judgment highlighted the lack of mens rea as a necessary ingredient for imposing penalties under the Customs Act.

Liability of Importing Firm and Individuals:
The judgment analyzed the liability of the importing firm and individuals involved in the case. While the firm was held liable for causing the import of goods subject to confiscation, the penalty imposed was reduced considering the circumstances. In the case of Akil Rassai, conflicting statements were noted regarding his involvement in the importing firm's actions. The penalty imposed on him was set aside due to the absence of necessary ingredients under Section 112(b) of the Customs Act.

In conclusion, the Tribunal upheld the confiscation of goods but allowed re-export under certain conditions. It also reduced redemption fines and penalties imposed on the importing firm and individuals based on the circumstances and legal requirements. The judgment provided a detailed analysis of each issue involved, ensuring a fair and comprehensive decision based on the Customs Act provisions.