2018 (11) TMI 1310 - HC - Customs

Rectification of mistake - Imposition of redemption fine - misdeclaration in the process of importation of car - Held that - From the first order of the Tribunal itself, it is clear that such a contention was raised and orally argued before the Tribunal. Despite this, the Tribunal failed to decide the same in its order. The appellant applied for rectification. At least in the rectification application, the Tribunal could have redressed the appellant's grievance. The appellant was clearly not asking for review of the order. The appellant's appeals are restored to the Tribunal only to the extent for deciding the appellant's challenge to the imposition of duty with interest on the appellant as has been done by the Adjudication Authority.

Summary

Issues:
1. Challenge to order of Customs, Excise and Service Tax Appellate Tribunal
2. Challenge to imposition of redemption fine and duty liability

Analysis:
1. The appellant challenged an order passed by the Customs, Excise and Service Tax Appellate Tribunal, along with the rejection of an application for rectification. The case involved the importation of a car where misdeclaration led to evasion of customs duty. The Adjudication Authority confirmed duty demand, ordered confiscation of the car, and offered redemption fine in lieu of confiscation. The appellant, a conoticee, was given the option to redeem the vehicle by paying a fine and the differential duty along with interest. The Tribunal dismissed the appeal concerning the redemption fine, stating that it was the appellant's liability since the car was provisionally released to him. However, the Tribunal failed to address the appellant's challenge regarding the duty liability.

2. The High Court noted that the redemption fine was optional and not an imposition of liability. The appellant's failure to challenge the confiscation of the vehicle meant that the redemption fine was a choice to avoid confiscation. The Court emphasized that the duty liability issue raised by the appellant should have been adjudicated by the Tribunal. Despite the appellant's rectification application, the Tribunal did not address this crucial issue. Consequently, the Court restored the appeals to the Tribunal solely for deciding the challenge to the duty imposition, as done by the Adjudication Authority. The Court refrained from expressing any view on the contentions raised by both sides regarding the duty liability.

In conclusion, the High Court directed the Tribunal to specifically address the appellant's challenge to the imposition of duty with interest. The Court clarified that the redemption fine was a choice, not a mandatory liability, and emphasized the importance of adjudicating all issues raised by the parties. The judgment highlighted the need for thorough consideration of legal arguments and rectification of any oversight in the initial decision-making process.