The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), ruled that no condition of re-export to be imposed when the goods are allowed to be redeemed on the payment of appropriate fine.
The appellant, Hardex, had filed a Bill of Entry for clearance of the imported good viz. industrial composite solvent by declaring its classification under CTH 38140010 which corresponds to the Heading organic solvents and thinners, not elsewhere specified or included. Due to mounting demurrage and immediate requirement of the imported goods to be used in their own factory, for the manufacture of paints, the appellant waived issuance of show cause notice and attended personal hearing extended to them.
The Commissioner ordered absolute confiscation of goods under Sections 111 (d) and 111 (m) of the Customs Act, 1962, but allowed to redeem the same for the purpose of export on payment of redemption fine of ₹ 75,000/- under the provisions of section 125 of Customs Act, 1962 and imposed penalty of ₹30,000/- under Section 112 (a) of Customs Act, 1962.
Since the office of the Commissioner (Appeals) was vacant, the appellant filed a writ petition before the High Court of Kerala challenging the action of the Department and the High Court ordered the respondent to provide to the petitioner copies of all test reports/report relied upon in order to establish that the goods imported by the petitioner are prohibited goods.
The Counsel for the appellant submitted that even after the direction of the High Court the appellants were not handed over the Test Reports nor sample was allowed to be drawn and sent to a Specialized Laboratory like Indian Institute of Petroleum to establish that the same are not prohibited goods.
It was further submitted that since almost one and half year has been passed and drawl of sample and testing in a reputed Lab will cause further delay, the Appellants are keen to release the goods on payment of fine for its use in the factory.
A Two-Member Bench of the Tribunal comprising Dr DM Misra, Judicial Member and R Bhagya Devi, Technical Member observed that “We do not see merit in the Order of the lower authorities directing absolute confiscation and allowing redemption solely to re-export on payment of redemption fine and penalty. Hence, the impugned order is modified to the extent of setting aside the direction of absolute confiscation and condition of re-export for redemption on payment of fine and penalty and hold that the goods are liable for confiscation.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
