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TMI Blog2002 (3) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... ery (Venus in short) placed an order for import of gold jewellery in March, 2001. The foreign supplier sent the jewellery under Invoice No. 0062, dated 21-4-2001. They filed Bill of Entry No. 151677, dated 31-5-2001 and claimed benefit under Notification No. 117/94-Cus. and produced Special Import Licence. The Customs Department informed them that Special Lmport Licence was not valid for import of gold with effect from 1-4-2001 and the gold jewellery could be imported against a specific import licence only. The importer requested the Department permission for re-exporting the jewellery. The Additional Commissioner, under Adjudication Order No. 24/2001, dated 25-8-2001 denied the permission to re-export the jewellery on the ground that ignor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , duty becomes payable under sub-section (2) of Section 125 of the Act. The learned D.R. finally mentioned that the importers have the option to redeem the goods on payment of redemption fine and to clear the goods on payment of duty and then they can re-export the goods and claim Drawback up to 98% of the duty under Section 74 of the Customs Act. 4. On the other hand Shri J.P. Kaushik, learned Advocate, for M/s. Venus, submitted that it is well settled that when the goods are confiscated because of ITC prohibition in terms of Section 111 of the Customs Act and an option to pay fine in lieu of such confiscation is given, the effect of such option is to lift the prohibition; that once the goods had been allowed to be re-exported, impositio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1997 (92) E.L.T. 367] 5. We have considered the submissions of both the sides. The facts which have not been disputed are that the order for import of gold jewellery was placed by the importers in March, 2001 when the import was allowed on the basis of Special Import Licence which was in possession of the importer. Notification No. 117/94 was issued by the Central Government providing concessional rate of Customs duty, inter alia, in respect of Gold in any form subject to the condition that the goods are covered by a Special Import Licence. No doubt the Import-Export Policy prescribes the requirement of Specific Import Licence for the import of gold jewellery, mens rea cannot be attributed to the importer in placing order for gold jewelle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods is not correct in law. When the goods are confiscated because of ITC prohibition in terms of Section 111(d) of the Act and an option to pay fine in lieu of such confiscation is given, the effect of such option is to lift the prohibition. In other words the importer/appellant is entitled to import the goods and consume them within the country on payment of such redemption fine. Therefore, the simultaneous imposition of two conditions namely (i) imposition of fine in lieu of confiscation and (ii) directing re-export, cannot co-exist together. 6. Similar views were held by the Tribunal in the case of HCL Hewlett Packard, 1997 (92) E.L.T. 367 (T) and Siemens Public Communication Networks Ltd. v. C.C. (Airport) [2001 (137) E.L.T. 623 (T) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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