9911796707
TMI Blog2009 (4) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... against the order-in-appeal dated 31-1-08 passed by Commissioner of Customs (Appeals), Mumbai-II. The Commissioner (Appeals) vide the impugned order, upheld the order-in-original dated 13-6-2007 passed by the Joint Commissioner of Customs, Group IV, Nhava Sheva, by which the Joint Commissioner confiscated HMS weighing 88300 Kg. valued at Rs. 8 lakhs, covered by IGM/Item No. 12562/268 under Section 111(d) of the Customs Act, 1962. However, he gave an option to redeem the same on payment of fine of Rs. 80,000/-. He also imposed a penalty of Rs. 16,000/- on the applicants under Sec. 112(a) of the Customs Act, 1962. 2. The brief facts of the case are that the appellants are engaged in the business of manufacture of alloys steel casting and pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 11-8-2005 when the appellants no longer required the goods and accordingly informed the suppliers the fact of not having taken the delivery of the raw materials. Appellants also informed the Commissioner of Customs, vide their letter dated 17-9-2007, that they had abandoned the goods in question. A show cause notice was issued on 10-11-2006 by the Jt. Commissioner of Customs calling upon the appellants to show cause as to why the goods should not be confiscated under Sec. 111(d) of the Customs Act, 1962 and why penalty should not be imposed on them. The show cause notice was adjudicated by the Jt. Commissioner. The adjudicating authority confiscated the goods with an option to the appellants to redeem the same on payment of fine and also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndoned before seeking clearance from the Customs authorities, no duty of Customs or redemption fine and/or penalty is required to be paid. The Hon'ble High Court in the said case held as under : ".... Where the imported goods are confiscated before an order for clearance is made with an option to redeem the goods on payment of fine in lieu of confiscation, then the duty on such goods does not become payable on imposition of fine in lieu of confiscation but has to be paid before seeking clearance of the goods, in such a case if the clearance of the goods is not sought for, the question of paying duty does not arise at all." 5. The appellants also relied upon the decision of the Tribunal in the case of CC, Nagpur v. Ankit Pulps Boards P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sec. 112(a) of the Customs Act, 1962, penalty can be imposed on the appellants. Sec. 112(a) of the Customs Act, 1962 is reproduced as under. "Section 112. Penalty for improper importation of goods, etc. - Any person,- (a) who, in relation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation under Section 111, or abets the doing or omission of such an act, or...." 7. After considering the arguments put forth by both the sides, I am of the opinion that the goods have been abandoned by the appellants and there is no evidence on record to show that there was deliberate or mala fide intention on the part of the appellants to import HMS in violation of provisions of Customs Act. I, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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