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Issues:
1. Import of second-hand machines under EXIM Policy. 2. Back-dating of Bill of Lading. 3. Seizure and confiscation of goods. 4. Imposition of redemption fine. 5. Role of importer in manipulation. 6. Departmental challenge to assessment. 7. Fairness of the Commissioner's decision. 8. Quantum of redemption fine. Analysis: 1. The case involves the import of second-hand machines under the EXIM Policy, where the goods were assessed based on documents indicating a shipment date before the policy restriction came into effect. However, it was later discovered that the goods were actually shipped after the restriction date, leading to seizure by the authorities. 2. The issue of back-dating the Bill of Lading arose, with the local agents admitting to this practice based on the shipper's instructions. This discrepancy in dates played a crucial role in determining the applicability of the EXIM Policy restriction and subsequent actions by the customs authorities. 3. The authorities seized the machines due to the breach of the EXIM Policy restriction, leading to confiscation under Section 111 of the Customs Act. The appellant waived the show-cause notice, prompting the Commissioner of Customs to order confiscation with an option for redemption upon payment of a fine. 4. The imposition of a redemption fine of Rs. 2 lakhs by the Commissioner was challenged in the appeal. The appellants argued against the lawfulness of the confiscation and penalty, emphasizing the absence of evidence implicating them in the Bill of Lading manipulation. 5. The Tribunal considered the arguments presented, noting the actual shipment date of the goods and the waiver of the show-cause notice by the appellants. Despite the lack of a specific license for importing second-hand machines after the policy date, the Commissioner refrained from penalizing the importer due to the absence of evidence of manipulation on their part. 6. The Tribunal rejected the contention that the Department could not seize the goods without challenging the assessment, emphasizing the independent nature of seizure/confiscation for goods imported in violation of restrictions, irrespective of duty assessment. 7. In evaluating the fairness of the Commissioner's decision, the Tribunal upheld the confiscation order and rejected the appeal, affirming the Commissioner's balanced approach in not imposing a penalty despite the breach of import regulations. 8. Regarding the quantum of the redemption fine, the Tribunal acknowledged the Commissioner's leniency in setting the fine at Rs. 2 lakhs, considering the value of the machines and duty paid. It was noted that a higher fine could have been imposed under Section 125 of the Customs Act, indicating fairness in the Commissioner's decision-making process.
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