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Issues:
- Appeal against order of Collector of Customs confiscating goods and imposing fine - Validity of import licences and subsequent cancellation - Liability of Vysya Bank Ltd. for redemption fine - Applicability of cancellation order on imports already made - Imposition of penalties on license holder and letter of authority holder - Department's objection to clearance based on intended use of imported goods - Compliance with conditions of import licences - Remittance of redemption fine by Vysya Bank Ltd. - Direction to obtain clearance from licensing authority before disposal of goods - Decision on waiver of demurrage charges Analysis: The judgment pertains to an appeal against the order of the Collector of Customs confiscating goods and imposing a fine of Rs. 50,000/- for each Bill of Entry. The case involved the importation of goods by M/s Vandana Enterprises on behalf of M/s Alam Tanneries Pvt. Ltd. against specific licences subject to conditions regarding usage in the manufacturing process. The department objected to the clearance, stating that the imported goods were not required for the intended purpose. Subsequently, the licences were cancelled on grounds of misrepresentation. The appellants, Vysya Bank Ltd., argued that they acted in good faith by opening the letter of credit and should not be penalized for the licence holders' actions. They cited legal precedents to support their position. The department contended that the cancellation of licences was justified as the imported goods did not align with the conditions specified. They argued that the redemption fine and confiscation were warranted due to non-compliance with licence conditions. The department also opposed the remittance of demurrage charges, attributing the delay to the illegal importation by the parties involved. After considering the arguments, the Tribunal upheld the liability of the goods for confiscation but deemed it fair to remit the redemption fine imposed on the goods if the appellants, Vysya Bank Ltd., chose to exercise that option. The Tribunal acknowledged that the bank acted in good faith and should not bear the burden of fines or penalties. The Tribunal directed the appellants to obtain clearance from the licensing authority before disposing of the goods to the specified actual user. However, the Tribunal did not recommend waiver of demurrage charges, citing the goods' liability for confiscation. In conclusion, the appeal was disposed of with the decision to uphold the liability of the goods for confiscation, remit the redemption fine imposed on the goods if opted by Vysya Bank Ltd., and provide directions regarding clearance from the licensing authority before disposal of goods. The Tribunal decided against recommending the waiver of demurrage charges.
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