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TMI Blog2003 (2) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... established? (2) Whether in the circumstances where the misdeclaration, etc., is established leading to the orders of the confiscation of the goods, penalty is not leviable when the goods are sought to be re-exported? On going through the detailed referal order we understand the issue No. (1) to mean whether in terms of Section 125 of the Customs Act power is vested with the adjudicating authority to impose redemption fine when liability to confiscation under Section 111 is established even when permission for re-export is granted. Both sides appearing before us also agree that scope of issue No.(1) is as above. 2.The reference was occasioned in view of the difference of opinion between Benches regarding the power of the adjudicating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the appellants are entitled to redeem the same on payment of Rs. 35,000/-". In the original order the adjudicating authority permitted the importer to re-export the goods on payment of redemption fine of Rs. 35,000/-. So ultimately, the effect of the order of the Tribunal was to delete permission given to the importer to re-export the goods. In Skantrons (P) Ltd. v. Collector of Customs, New Delhi, 1994 (70) E.L.T. 635 (T) it was held that imposition of redemption fine on confiscation of goods under Section 111(d) while giving option to re-export of the goods is not correct in law. It was observed that importer is entitled to import the goods and consume the same within the country on payment of redemption fine. Therefore, the simultaneou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is entitled to refund of the redemption fine. The question whether redemption fine could be imposed when goods are liable to be confiscated even when re-export is permitted as such was not an issue before the Supreme Court. Therefore, we find that the above decision is not an authority in support of the contention raised by the appellant. 5.In Siemens Public Communication Networks Ltd. v. CC (Airport), Calcutta, 2001 (137) E.L.T. 623 (Tri.-Kolkata), Eastern Bench, Kolkata took the view that the issue is covered in favour of the appellant by the decision of the Supreme Court in Siemens Ltd., and the other decisions referred above and it was held that when the Commissioner had given an option for reshipment of the goods back to the suppli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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.' It is also laid down in Section 125 that the fine shall not exceed market price of the goods less duty chargeable in respect of such goods. The fine is to be paid apart from the duty and charges payable on such goods. Section 126 of the Customs, 1962 lays down that when any goods are confiscated under the Customs Act, 1962 such goods shall thereupon vest in Central Government. Thus when goods are found to be offending goods and an order of confiscation is passed, then the goods shall vest in Central Government. If they are to be restored to the owner, the adjudicating author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffirmed re-export of imported goods. After rejecting the contention of the Revenue that if an importer intends to export the goods imported he should clear them for warehousing and then proceed in terms of Section 69 the Apex Court held as follows :- "On the other hand, there are provisions which indicate that export of imported goods is very much envisaged under the statute. The provisions contained in S. 74 fully reinforce this interpretation. Indeed S. 74 would be redundant if the Department's stand that imported goods cannot be exported were to be accepted as correct. As pointed out by Counsel for the appellant, para 174(1) of the Policy which reads: 'No REP. benefits are admissible in the case of imported goods which are re-exporte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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