2015 (12) TMI 474 - AT - Customs

Imposition of redemption fine - Goods not available for confiscation - Held that - Neither the goods are available nor has been released on execution of bond, in that circumstances, we hold that decision of Weston Components Ltd. is not applicable to the facts of this case and the Larger Bench decision of this Tribunal in the case of Shiv Kripa Ispat Pvt. Ltd. 2009 (1) TMI 124 - CESTAT MUMBAI wherein it has been held that in case neither the goods are available nor released under any bond, in that case, redemption fine is not imposable although the goods are liable for confiscation. Therefore, we hold that the learned Commissioner has rightly held that the goods are liable for confiscation but refrained from imposing redemption fine. Therefore, we do not find any infirmity in the impugned order, same is upheld. - Decided against Revenue.

Summary

Issues involved:
- Imposition of redemption fine when goods are not available to customs authorities

Analysis:
The appeal was filed by the Revenue against an order where the Commissioner held that goods were liable for confiscation but redemption fine was not imposable due to unavailability of goods. The Revenue argued that based on a decision by the Hon'ble Apex Court in the case of Weston Components Ltd., redemption fine should be imposed even if goods are not available. However, the learned AR submitted that in the present case, goods were neither available nor released on bond, and therefore, redemption fine should be imposed as per the Weston Components Ltd. case. The Tribunal examined the facts and referred to a Larger Bench decision in the case of Shiv Kripa Ispat Pvt. Ltd., which held that if goods are neither available nor released under any bond, redemption fine is not imposable despite the goods being liable for confiscation. Consequently, the Tribunal upheld the Commissioner's decision that the goods were liable for confiscation but refrained from imposing a redemption fine, dismissing the Revenue's appeal.

This judgment clarifies the legal position regarding the imposition of redemption fine in cases where goods are not available to customs authorities. It distinguishes the applicability of the Weston Components Ltd. case and the Shiv Kripa Ispat Pvt. Ltd. case, providing guidance on when redemption fine is imposable. The Tribunal's decision highlights the importance of considering the specific circumstances of each case when determining the imposition of redemption fines, emphasizing the need for goods to be available or released under bond for such fines to be applicable.