9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (11) TMI 191 - AT - CustomsQuantum of redemption fine on re-export of goods - import of Arecanuts - rejection of cargo under section 25 of FSSAI Act, 20006 as samples did not conform to Food Safety and Stands (Food Products Standards and Food Additives) Regulations 2011 - HELD THAT - The jurisdictional High Court in the case of Sankar Pandi (supra) has held that imposition of redemption fine cannot sustain when the goods are to be redeemed for the purpose of re-export only - the redemption fine is set aside. Imposition of penalty u/s 112(a) of the Customs Act, 1962 - HELD THAT - The Commissioner (Appeals) has reduced the penalty to ₹ 2 lakhs. The ld. AR has pointed out that the goods imported were intended for human consumption and that the goods did not conform the FSSAI standards, penalty imposed is reasonable. We are in full agreement with the argument put forward by the ld. AR and therefore we find that the imposition of penalty does not require any interference. The impugned order is modified to the extent of setting aside the redemption fine only - appeal allowed in part.
Issues:
1. Imposition of redemption fine and penalty on the appellant for the import of Arecanuts rejected under FSSAI Act. 2. Challenge to the redemption fine and penalty before the Tribunal. 3. Interpretation of legal provisions regarding redemption fine and penalty in the context of re-export of goods. 4. Consideration of the appellant's argument regarding demurrage charges and penalty. Analysis: The appellant imported Arecanuts, which were rejected under section 25 of the FSSAI Act, 2006, for not conforming to Food Safety and Standards Regulations. The original authority ordered confiscation of the goods with an option for redemption on payment of a fine of ?10 lakhs for re-export only. Additionally, a penalty of ?5 lakhs was imposed under section 112 of the Customs Act, 1962. The Commissioner (Appeals) upheld the confiscation and re-export direction but reduced the redemption fine to ?3 lakhs and the penalty to ?2 lakhs. The appellant contested the redemption fine and penalty before the Tribunal. The appellant's counsel argued that as the goods were directed for re-export, the redemption fine should not apply, citing the decision in the case of Sankar Pandi Vs. UOI. The Tribunal, following the precedent upheld by the Hon'ble Supreme Court, set aside the redemption fine, agreeing that it cannot be imposed when goods are to be re-exported. However, the appellant's challenge to the penalty imposed under section 112(a) of the Customs Act, 1962, was not accepted. The Tribunal found the penalty reasonable as the imported goods were for human consumption but did not meet FSSAI standards. The argument that the penalty should be set aside due to demurrage charges was not accepted. Therefore, the Tribunal modified the impugned order by setting aside the redemption fine only, allowing the appeal partly in those terms.
|
