1992 (2) TMI 221 - AT - Customs

Summary

Issues Involved:
The appeal concerns the confiscation of imported goods under Section 111(d) of the Customs Act, 1962, and the imposition of a redemption fine for re-exportation.

Confiscation of Goods:
The appellants imported ball-bearings from Democratic People Republic of Korea, seized by Officers under Section 110 of the Customs Act due to suspected unauthorized importation. The Additional Collector ordered confiscation under Section 111(d) and allowed re-export on payment of a redemption fine of Rs. 35,000. The appellants contested the imposition of the redemption fine, citing a lack of provision for such action under the Act. Reference was made to the case of M/s. Goodyear India Ltd., where it was held that the Adjudicating Authority lacks the power to impose a redemption fine for re-exportation.

Legal Precedents:
The Tribunal referred to Section 125 of the Customs Act, which allows the option to pay a fine in lieu of confiscation. The Tribunal's decision in the case of M/s. Goodyear Limited emphasized that while fine payment validates importation, there is no provision for re-exportation on payment of a redemption fine. The Tribunal modified the Collector's order in the Goodyear case, allowing redemption of goods on payment of a specified fine. Similarly, in this case, the Adjudicating Authority's decision to permit re-export on payment of a redemption fine was deemed incorrect.

Decision:
The Tribunal found that the Additional Collector lacked the authority to impose a redemption fine for re-exportation of goods. Consequently, the order was modified to allow redemption of the confiscated goods on payment of a fine of Rs. 35,000. The Tribunal clarified that upon payment of the redemption fine, the Importer becomes the absolute owner of the goods and is free to export them in compliance with Customs Act provisions. The Tribunal distinguished the present case from Uma Textile v. Collector of Customs, where no personal penalty was imposed. Ultimately, the appeal was resolved in favor of modifying the order to align with legal provisions regarding redemption fines and re-exportation of goods.