1989 (10) TMI 179 - AT - Customs

Summary

Issues involved: Importation of goods with forged license, undervaluation of goods, imposition of redemption fine and penalty, refund of demurrage, refund of freight, imposition of interest.

Importation of goods with forged license: The appellant imported items for industrial activities against bills of entry, some goods required specific import license. Customs authorities found the license endorsement to be forged, leading to a show cause notice alleging undervaluation. The appellant claimed innocence, stating the license was purchased in good faith, but the adjudicating authority held the goods were imported without a license. The goods were confiscated under Section III(d) of the Customs Act, 1962, with an option for re-export within one month with a redemption fine and a personal penalty imposed under Section 112(a) of the Act.

Imposition of redemption fine and penalty: The appellant exercised the option for re-export and sought refunds of demurrage and freight. The Tribunal found the adjudicating authority's refusal to consider a valid license for clearance incorrect. It clarified that when goods are confiscated with an option for redemption, the importer can consume them upon payment of the fine, making the simultaneous imposition of re-export and fine invalid. The Tribunal ordered a refund of the redemption fine and set aside the penalty imposed on the appellant.

Refund of demurrage and freight: The Tribunal acknowledged the appellant's plea for demurrage refund due to peculiar circumstances but stated it lacked the authority to order such a refund. The plea for interest on amounts paid was rejected as there is no provision for it in the Customs Act. No relief was granted for the refund of to and fro freight, as the appellant had the option to stay the impugned order.

Conclusion: The Tribunal disposed of the appeal by ordering a refund of the redemption fine, setting aside the penalty, and addressing the pleas for demurrage, interest, and freight refund based on the legal provisions and circumstances of the case.