1998 (7) TMI 233 - AT - Customs

Summary

Issues:
1. Appeal against the Impugned Order No. 334/94 BCH for clearance under OGL without insisting for End use evidence.
2. Confiscation of imported Star Aniseed due to failure to produce evidence of end use for manufacturing Ayurvedic/Unani drugs.
3. Arguments regarding the tenability of the confiscation order, harshness of penalty and redemption fine, and breach of conditions undertaken.
4. Examination of whether the redemption fine and penalty should be reduced.
5. Decision on the appeal and modification of the orders of lower authorities.

Detailed Analysis:

1. The appellant appealed against the Impugned Order No. 334/94 BCH, seeking clearance under OGL without the requirement of End use evidence. The imported Star Aniseed was intended for making ayurvedic/unani drugs, but the appellant failed to provide evidence of this intended use, leading to the confiscation of the goods and imposition of fines and penalties.

2. The appellant imported Star Aniseed under an end-use bond but failed to produce evidence of its use for manufacturing ayurvedic/unani drugs. The confiscation was based on this failure to comply with the conditions stipulated, leading to the penalty and redemption fine. The Collector of Customs (Appeals) upheld the confiscation, prompting the appellant's appeal.

3. The arguments presented by both sides revolved around the tenability of the confiscation order, the severity of the penalty and redemption fine, and the breach of conditions by the appellant. The appellant's counsel argued against the confiscation, emphasizing the absence of contravention of laws or duty evasion. On the other hand, the respondent argued that the appellant failed to produce the required evidence, justifying the penalty and fine.

4. The examination of whether the redemption fine and penalty should be reduced involved a detailed review of the case facts, including the import of Star Aniseed, the failure to provide evidence of intended use, and the breach of conditions. The analysis considered the value of the goods, the nature of the import, and the appellant's actions leading to the confiscation.

5. The final decision on the appeal resulted in a partial allowance, with modifications to the orders of the lower authorities. The redemption fine was reduced from Rs. 75,000 to Rs. 50,000, and the penalty was decreased from Rs. 20,000 to Rs. 10,000. The decision aimed to balance the interests of justice while upholding the consequences of the appellant's actions regarding the imported goods.