2018 (3) TMI 778 - AT - Customs

Confiscation of imported goods - whether old and used computer, chairs, books, TV s stationeries & LCD, photo copier imported by the appellant, who is a Charitable Education Society, is liable to be confiscated? Held that - As per Foreign Trade Policy, the appellant should have obtained the license and for failure to do so, the goods are liable for confiscation. Since the appellant is a charitable education society and running for social cause of Muslim community, they do not have any undue benefit. Accordingly, the mala fide intention is not proved - appellant deserves leniency - redemption fine reduced from ₹ 35,000/- to ₹ 15,000/- and penalty is reduced from ₹ 5000/- to ₹ 3000/- - appeal allowed in part.

Summary

Issues:
1. Confiscation of old and used imported goods by a charitable education society.
2. Requirement of obtaining a license for importing second-hand computers.
3. Consideration of redemption fine and penalty for the charitable nature of the society.

Analysis:
1. The primary issue in this case revolved around the confiscation of old and used goods, including computers, chairs, books, TVs, stationeries, LCDs, and a photo copier, imported by a Charitable Education Society. The question was whether these goods were liable to be confiscated. The adjudicating authority imposed a redemption fine of &8377; 50,000/- and a penalty of &8377; 5000/-. In the appeal, the redemption fine was reduced to &8377; 35,000/- by the learned Commissioner (Appeals), considering one of the items, the holy Quran. The appellant sought a waiver of the redemption fine and penalty.

2. The lower authorities had confiscated the goods, arguing that since the computers were second-hand, the appellant should have obtained a license, which they failed to do. This failure to obtain a license led to the confiscation.

3. The President of the appellant Society emphasized the charitable nature of the institution, highlighting its long-standing commitment to the betterment of the community without any profit motive. It was argued that any lapses were unintentional, and there was no malicious intent. On the other hand, the Revenue representative reiterated the findings of the impugned order.

4. The Tribunal carefully considered both sides' submissions and noted that the appellant had indeed imported old and used computers without the required license, making the goods liable for confiscation under the Foreign Trade Policy. However, given the charitable and social cause served by the appellant, coupled with the absence of any undue benefit or malicious intent, the Tribunal found that further leniency was warranted.

5. Consequently, the Tribunal decided to reduce the redemption fine from &8377; 35,000/- to &8377; 15,000/- and the penalty from &8377; 5000/- to &8377; 3000/-, acknowledging the charitable nature of the appellant and the lack of any wrongful gain. The appeal was partly allowed on these terms, providing relief to the appellant.

This judgment highlights the importance of considering the specific circumstances and intentions of parties involved, especially in cases concerning charitable organizations, while also upholding the legal requirements for importing goods.