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Issues:
1. Interpretation of Import and Export Policy regarding clubbing of flexibility value under different licenses. 2. Validity of confiscation of imported vessel for breaking. 3. Imposition of redemption fine and personal penalty on the appellants. Detailed Analysis: 1. The appeal was against an order confiscating a vessel imported for breaking, allowing redemption on payment of a fine and imposing a personal penalty. The appellants, engaged in ship breaking, imported a ship using REP licenses with flexibility provisions. The Department objected to clearance based on clubbing flexibility values of licenses. The Collector passed the confiscation order, leading to the appeal. The appellants argued that clubbing license values is permissible under Para 179 and cited clarifications supporting their stance. The Department contended that clubbing was not allowed for non OGL Capital Goods. The Tribunal noted the conflicting interpretations but found that the licensing authority did not explicitly prohibit clubbing. The Tribunal also considered a REP Circular allowing clubbing, issued before the adjudication. The Tribunal held that under the amended Policy, clubbing was permitted, remitting the fine and penalty imposed by the Collector. 2. The appellants imported a ship for breaking using REP licenses with flexibility provisions. The Department objected to clearance based on clubbing flexibility values of licenses. The Collector ordered confiscation of the vessel, which was appealed. The appellants argued for the validity of clubbing based on clarifications and circulars supporting their position. The Department contended that clubbing was not allowed for non OGL Capital Goods. The Tribunal found that the licensing authority did not expressly prohibit clubbing and noted the REP Circular allowing clubbing. The Tribunal held that under the amended Policy, clubbing was permitted, remitting the fine and penalty imposed by the Collector. 3. The Collector ordered confiscation of a vessel imported for breaking, allowing redemption on payment of a fine and imposing a personal penalty. The appellants appealed, arguing for the validity of clubbing license values under the Import Policy. The Department contended that clubbing was not allowed for non OGL Capital Goods. The Tribunal found that the licensing authority did not explicitly prohibit clubbing and considered a REP Circular allowing clubbing. The Tribunal held that under the amended Policy, clubbing was permitted, remitting the fine and penalty imposed by the Collector. The Tribunal found no grounds for imposing a personal penalty, as the appellants had sought clarification before importing the ship.
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