1997 (11) TMI 272 - AT - Customs

Issues Involved:
1. Enhancement of redemption fine by the Commissioner (Appeals).
2. Availability of goods for confiscation under Section 125 of the Customs Act.
3. Legal authority of the Commissioner (Appeals) under Section 128A of the Customs Act.
4. Market price determination of Black Cumin Seeds versus White Cumin Seeds.
5. Adequate opportunity to appellants regarding enhancement of redemption fine.

Detailed Analysis:

1. Enhancement of Redemption Fine by the Commissioner (Appeals):
The primary issue was the enhancement of the redemption fine by the Commissioner (Appeals) to 100% of the CIF value, which was contested by the appellants. Initially, the lower authority had fixed a redemption fine ranging from 25% to 50%. The Commissioner (Appeals) increased this to 100%, justifying it based on market price data sourced from the Economic Times. The Tribunal noted that the Commissioner (Appeals) had the authority to modify the redemption fine under Section 128A of the Customs Act.

2. Availability of Goods for Confiscation Under Section 125 of the Customs Act:
The appellants argued that since the goods had already been released, the Commissioner (Appeals) should not have enhanced the redemption fine. The Tribunal observed that the goods were available for confiscation when the original authority passed the order. The enhancement of the redemption fine was considered a modification of the existing order, which is within the jurisdiction of the Commissioner (Appeals) under Section 128A(3).

3. Legal Authority of the Commissioner (Appeals) Under Section 128A of the Customs Act:
The Tribunal affirmed that the Commissioner (Appeals) had the necessary authority to enhance the redemption fine under Section 128A of the Customs Act. This section allows the Commissioner (Appeals) to confirm, modify, or annul the decision or order appealed against. The power to enhance the redemption fine was seen as part of the supervisory role to prevent any miscarriage of justice.

4. Market Price Determination of Black Cumin Seeds Versus White Cumin Seeds:
The Tribunal noted the need for accurate market price data to determine the appropriate redemption fine. The Commissioner (Appeals) had used data from the Economic Times to conclude that the price of White Cumin Seeds was higher than that of Black Cumin Seeds. However, the Tribunal directed the lower appellate authority to conduct further enquiries to ascertain the differential market prices of Black and White Cumin Seeds. The matter was remanded for fresh findings based on this enquiry.

5. Adequate Opportunity to Appellants Regarding Enhancement of Redemption Fine:
The appellants contended that they were not given a reasonable opportunity to contest the enhancement of the redemption fine. The Tribunal dismissed this argument, stating that the appellants were aware of the department's appeal for enhancement and had the opportunity to present evidence to counter the department's claims. The Tribunal concluded that the appellants had sufficient opportunity to rebut the grounds of appeal.

Conclusion:
The Tribunal upheld the Commissioner (Appeals)' authority to enhance the redemption fine under Section 128A of the Customs Act and dismissed the appellants' arguments regarding the unavailability of goods and lack of opportunity. The matter was remanded to the lower appellate authority to conduct an enquiry into the market prices of Black and White Cumin Seeds and to adjust the redemption fine accordingly. The appeals were decided in these terms.

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