1998 (11) TMI 322 - AT - Customs

Summary

Issues:
1. Consideration of appeal jurisdiction based on Public Notice.
2. Request for early hearing due to goods deterioration and demurrage.
3. Confiscation and redemption fine based on market inquiry.
4. Disagreement on redemption fine amount and market price.
5. Reliability of market price evidence and fluctuation of garlic prices.
6. Non-honoring of Bank guarantee and personal bond leading to cargo deterioration.
7. Denial of principles of natural justice in adjudication proceedings.

Analysis:
1. The applicants sought consideration of their appeal jurisdiction based on a Public Notice, citing economic reasons to have the matter heard in Chennai instead of Mumbai. The Tribunal ordered the matters to be considered by the Bench in accordance with the Public Notice.

2. Another application requested early hearing due to goods deterioration and demurrage issues faced by the applicants. The Tribunal considered this request and proceeded with the hearing.

3. The dispute revolved around the confiscation and redemption fine imposed based on a market inquiry conducted by Mumbai Custom House. The Order-in-Original determined the wholesale market price of garlic to be Rs. 45/- per kg, leading to a high redemption fine.

4. The advocate for the applicant argued against the redemption fine, presenting evidence of lower market prices and discrepancies in the inquiry process. The Tribunal noted the lack of transparency in the calculations and the denial of natural justice, leading to a decision to remand the matter for re-consideration.

5. The reliability of market price evidence, particularly from the "Financial Express," was questioned due to price fluctuations and varying reports. The Tribunal emphasized the need for objective and transparent processes in determining fines and prices.

6. The issue of non-honoring of the Bank guarantee and personal bond by the Custom House was raised, leading to cargo deterioration. The Tribunal directed the Commissioner to complete re-adjudication promptly and ensure compliance with Chief Commissioner's orders.

7. The Tribunal found a denial of principles of natural justice in the adjudication proceedings, highlighting the importance of providing importers with all inquiry details and a fair hearing. The Order-in-Original was set aside, and the matter was remanded for a fresh consideration with proper transparency and opportunity for the importers.