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TMI Blog2020 (3) TMI 770X X X X Extracts X X X X X X X X Extracts X X X X ..... the category of restricted goods in terms of provisions of Exim Policy and a license is required for valid importation of these goods as per DGFT Policy Circular No. 37 (RE-08) 2004-2009 dated 31/10/2008. The importer - appellant appeared to have not cleared the imported goods namely marble blocks classifiable under heading No. 2515 valued at Rs. 59,07,768/- even after expiry of the period of 30 days as stipulated under Section 48 of the Customs Act, 1962. Accordingly, seven Show Cause Notices having different dates were issued to the importer - appellant as well as to any other person making any claim on the goods. During the course of personal hearing the importer claimed that as they were facing acute financial crisis, a request was made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed goods had already been disposed of by the Department during the pendency of appeal and without waiting for outcome of the appeal/ legal remedies by the owner of the goods, as such the goods are no longer available and thus the same cannot be redeemed by the importer-importer on payment of fine. Consequently, there is no question of payment of redemption fine as well as Customs duties when goods cannot be released for home consumption. Therefore, the importer will be entitled to receive the part of sale proceeds received by the Customs at the time of auction of the imported goods, subject to the Rules and regulation in this regard and thus, importer has a valid claim from the Department on the sale proceeds of the auctioned goods. The pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial disposal can also be undertaken. In this process, the sale proceed replaces the goods, which can be retained in full in case of absolute confiscation or in part upto the amount of redemption fine if the goods are allowed to be redeemed on payment of redemption fine. At the time of disposal of goods, even if it is during the process of appeal, the legal obligation of payment of Redemption fine, Customs duties and other charges, as per Section 125 of the Customs Act, 1962, on the importer cannot be waived. Thus, non-availability of goods at the time of order-in-appeal cannot be a valid ground for setting aside the payment of Redemption fine and Customs duty leviable on the goods. 3. During the course of arguments, the learned Departmenta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iable for payment of sale proceeds after deducting the amount of redemption fine. I do not find any merit in the contentions that sale proceeds of the goods should be vested with the Government. In fact the respondent had a right to receive the goods after paying the redemption fine and penalty as adjudged by the Collector (Appeals). Having been deprived of that right, they could not be subjected to further burden by way of deprivation even of sale proceeds of these goods. Once they pay redemption fine and penalty as adjudged in appeal, they are justified in claiming the sale proceeds of the goods sold through auction". 4. Accordingly, learned Departmental Representative has claimed that the redemption fine has to be deducted alongwith the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and regulation in this regard. The same may be claimed from the Customs authority. The penalty imposed to the extent of Rs. 1,50,000/- may be deducted out of the sale proceeds". 6. On being asked from the revenue whether the department has challenged the above said order in the case of the respondents, Learned DR has deposed that the order was not challenged due to low monetary effect as per Revenue Policy. 7. Thus after carefully examining the rival arguments, though we are of the considered view that once confiscation of the goods is held to be valid in any proceedings, the property in the goods is vested in the Government and the sale proceeds being the total consideration of such property, as a natural corollary such sale proceeds wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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