2015 (5) TMI 457 - AT - Customs

Extension of period of warehousing under Section 61 of the Customs Act - Confiscation of goods - Redemption fine - Expiry of warehousing period - Held that - As per Circular No. 47/2002-Cus., dated 29th July, 2002 Commissioner is having power under Section 61 of the Customs Act, 1962 to condone the delay by extending the period for warehousing period. The said exercise has not been done by Chief Commissioner in the impugned order. Therefore, in these circumstances when the power is given the period of warehousing with a delay, in these circumstances, the same should be exercised judiciously but the same was not exercised. Therefore, extend the warehousing period till the time the application for re-export of the impugned goods be considered by Id. Chief Commissioner. - Matter remanded back - Decided in favour of assessee.

Summary

Issues:
Extension of period of warehousing under Section 61 of the Customs Act, 1962; Re-export of impugned goods; Confiscation of goods; Imposition of redemption fine and penalty.

Extension of Period of Warehousing:
The appellant appealed against the rejection of the application for extension of warehousing under Section 61 of the Customs Act, 1962. The appellants imported goods and sought warehousing, which expired before they could apply for an extension. The Tribunal found that the power to condone the delay by extending the warehousing period was not exercised judiciously by the Chief Commissioner. Therefore, the Tribunal ordered the extension of the warehousing period until the application for re-export of the goods is considered.

Re-export of Impugned Goods:
The Tribunal clarified that it cannot decide on the re-export issue as the power lies with the Chief Commissioner. The matter was remanded back to the Chief Commissioner to decide on the re-export of the goods within 30 days. The appellant was directed to provide necessary documents to the Chief Commissioner within seven days from the date of the order.

Confiscation of Goods and Imposition of Fine:
The impugned goods were at risk of confiscation due to the rejection of the warehousing extension. Consequently, a redemption fine of Rs. 20 lakhs and a penalty of Rs. 5 lakhs were imposed along with the demand for duty on the goods. The Tribunal's decision to extend the warehousing period would impact the confiscation and penalties imposed, subject to the Chief Commissioner's decision on re-export.

The Tribunal's order aimed to ensure that the power under Section 61 of the Customs Act, 1962 is exercised judiciously, allowing for a fair consideration of the extension of warehousing and the re-export of goods. The matter was remanded back to the Chief Commissioner for a timely decision on the re-export issue, emphasizing the need for the appellant to provide necessary documents promptly.