2005 (1) TMI 274 - AT - Customs

Issues Involved:
1. Confiscation of goods under Section 111(d) of the Customs Act, 1962.
2. Confirmation and recovery of customs duty under Section 28(1) of the Customs Act, 1962.
3. Imposition of redemption fine under Section 125 of the Customs Act, 1962.
4. Confiscation of the vehicle under Section 115 of the Customs Act, 1962.
5. Imposition of penalties under Section 112 of the Customs Act, 1962.

Detailed Analysis:

1. Confiscation of Goods under Section 111(d) of the Customs Act, 1962:
The Commissioner of Customs (Preventive), Mumbai, ordered the confiscation of electronic digital watches, watch movements, watch dials, watch modules, and gauges under Section 111(d) of the Customs Act, 1962. The goods were initially seized based on intelligence that they were smuggled. However, the appellant provided documents indicating the goods were imported legally. The Tribunal found that the Commissioner had erred in concluding the goods were smuggled based on minor discrepancies and conjectures, ignoring crucial evidence such as affidavits and statutory records. The Tribunal ruled that the goods were licitly imported and not liable for confiscation under Section 111(d).

2. Confirmation and Recovery of Customs Duty under Section 28(1) of the Customs Act, 1962:
The Commissioner confirmed a customs duty of Rs. 37,38,049/- to be recovered from the Bank Guarantee furnished by the appellant. The Tribunal found that the demand for customs duty was illegal since the duty had already been paid by M/s. Trust Time Co. under Bill of Entry No. A-6197, dated 28-4-2000. The Tribunal concluded that the appellant had discharged the burden of proving the goods were legally imported, thus nullifying the demand for additional customs duty.

3. Imposition of Redemption Fine under Section 125 of the Customs Act, 1962:
The Commissioner imposed a redemption fine of Rs. 20.00 lakhs for the provisional release of the goods and Rs. 8,000/- for other goods. The Tribunal set aside these fines, finding that the seized goods were not smuggled and were legally imported. The fines were deemed unnecessary and unjustified.

4. Confiscation of the Vehicle under Section 115 of the Customs Act, 1962:
The tempo bearing registration No. GA-01-Z-3600 was ordered to be confiscated under Section 115 of the Customs Act, 1962, with a redemption fine of Rs. 25,000/- imposed. The Tribunal found discrepancies in the vehicle registration details noted by the officers and concluded that the vehicle was not liable for confiscation. The redemption fine and confiscation order were set aside.

5. Imposition of Penalties under Section 112 of the Customs Act, 1962:
Penalties were imposed on M/s. Vinay Exports and several individuals under Section 112 of the Customs Act, 1962. The Tribunal found that the Commissioner had based the penalties on insufficient evidence and minor discrepancies. The penalties were set aside as the Tribunal concluded that the goods were legally imported and the appellants had not committed any offenses warranting penalties.

Conclusion:
The Tribunal allowed the appeals, setting aside the orders of confiscation, redemption fines, customs duty demand, and penalties. The seized goods were deemed legally imported, and the appellants were granted consequential relief.

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