1990 (8) TMI 265 - AT - Customs

Summary

Issues:
1. Validity of import after expiry of license.
2. Imposition of redemption fine for re-shipment.
3. Interpretation of statutory provisions under Customs Act regarding unauthorized import.
4. Discretion of authorities in ordering confiscation or imposition of penalty.

Analysis:

Issue 1: Validity of import after expiry of license
The appeal was against an order modifying the redemption fine for re-shipment from Rs. 60,000 to Rs. 30,000. The appellants imported goods after the expiry of the license, leading to objections by the Department. The appellants sought re-shipment due to defective goods. The Collector (Appeals) acknowledged the appellants' efforts to import within the license period. The advocate argued that there was no mala fide intent and cited precedents where penalty imposition was discretionary. The Department insisted on confiscation due to unauthorized import. The tribunal noted the unauthorized import but accepted the appellants' lack of intent to violate the law. Referring to precedents, the tribunal held that penalty imposition could be waived based on circumstances. The order of the adjudicating authority was set aside due to the lack of necessity for confiscation and fine imposition.

Issue 2: Imposition of redemption fine for re-shipment
The appellants sought re-shipment of defective goods after importing post-license expiry. The Department permitted re-export at the risk of the appellants and reduced the redemption fine to 50%. The tribunal, considering the circumstances and the lack of intent to clandestinely import, set aside the order of confiscation and fine imposition for re-export. The tribunal emphasized that the appellants' bona fides were acknowledged by the Department, leading to the decision to waive the confiscation and fine imposition.

Issue 3: Interpretation of statutory provisions under Customs Act
The tribunal analyzed the legality of the import, which was unauthorized due to the shipment occurring after the license expiry. Despite the unauthorized import, the tribunal recognized the appellants' intention to re-ship the defective goods upon supplier request. The tribunal cited precedents to emphasize that confiscation and fine imposition were not mandatory and could be waived based on the circumstances of each case. The tribunal held that the Department's satisfaction with the appellants' bona fides justified not ordering confiscation and fine imposition.

Issue 4: Discretion of authorities in ordering confiscation or penalty imposition
The tribunal highlighted that confiscation and fine imposition were not unavoidable in cases of unauthorized import. It considered the Department's acknowledgment of the appellants' bona fides and the circumstances of the case to conclude that confiscation and fine imposition were unnecessary. The tribunal allowed the appeal, noting that the goods had already been re-exported, and emphasized that the decision was influenced by the prayer for re-export, justifying the waiver of confiscation and fine imposition.