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TMI Blog2025 (1) TMI 490X X X X Extracts X X X X X X X X Extracts X X X X ..... 000/- from Rs. 3,00,000/- and further held that the appellant would have to pay duty and other charges, if he chooses to pay the redemption fine and redeem the motorbike. 2. The facts which led to the issue in the impugned order are that, the Directorate of Revenue Intelligence [DRI], Delhi Zonal Unit received intelligence and conducted discreet enquiries and thereafter searched the premises of Jaspal Singh alias Bittoo in New Delhi and recovered 13 imported motorbikes including MV Augusta 1000 CC having registration No. MH-06 AR-7789. As Jaspal Singh was unable to produce any legal documents for legal possession and acquisition of this bike, it was detained under a panchnama. Thereafter, the matter was investigated and statements were rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mporter. However, he upheld the imposition of redemption fine, but reduced it from Rs. 3,00,000/- to Rs. 2,00,000/-. He also reduced the penalty under section 112 of the Customs Act imposed on the appellant to Rs. 25,000/-. 5. We have heard learned counsel for the appellant and learned authorized representative for the Revenue and perused the records. 6. Learned counsel for the appellant submitted as follows:- (i) The appellant had purchased the motorbike in good faith and for a consideration. It was registered with the Motor Vehicles Department and, therefore, he had no reason to doubt the genuineness of the transaction. (ii) The appellant had not imported the motorbike and, therefore, he was not liable to pay customs duty as has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, in lieu of confiscation. Section 125 (2) of the Customs Act reads as follows :- "(1) Option to pay fine in lieu of confiscation. - (1) Whenever confiscation of any goods is authorised by this Act, the officer adjudging it may, in the case of any goods, the importation or exportation whereof is prohibited under this Act or under any other law for the time being in force, and shall, in the case of any other goods, give to the owner of the goods or, where such owner is not known, the person from whose possession or custody such goods have been seized, an option to pay in lieu of confiscation such fine as the said officer thinks fit. (2) Where any fine in lieu of confiscation of goods is imposed under sub-section (1), the owner of such g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o cross appeal by the Revenue against this finding. Therefore, the issue that the appellant is not the importer is settled. 13. The next question is of confiscation of the goods. In the impugned order, the Commissioner (Appeals) did not discuss the confiscation of the goods, but only reduced the redemption fine from Rs. 3,00,000/- to Rs. 2,00,000/-. It needs to be pointed out that for redemption fine to be imposed the goods must be confiscated in the first place. If goods are confiscated, the title of the goods passes to the Central Government. However, if an option of redemption is given to the appellant and the appellant chooses that option, then the title of the goods goes back to the appellant under section 125 of the Customs Act. Cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 114A of the Customs Act, 1962. 6. I also impose a penalty of Rs. 5 lakhs on Shri Rishi Sood under section 112 of the Customs Act, 1962. 7. I refrain from imposing any penalty of Shri Jaspal Singh in view of my foregoing discussions". 14. There is also no finding anywhere in the order of the Joint Commissioner as to why the motorbike was liable for confiscation under what section. 15. The Commissioner (Appeals) did reproduce the show cause notice in paragraph 6.1 and 6.2 that the goods appeared to be liable for confiscation under section 111 (d) of the Customs Act and consequently the appellant were liable for penalty under section 112 (a) and 112 (b) of the Customs Act. However, in the absence of any specific finding that the goods we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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