Tribunal upholds customs confiscation order, imposes fine and penalty

The Tribunal upheld the order-in-original confiscating goods worth Rs. 14,35,518 under Section 111(d) of the Customs Act, allowing redemption on payment of Rs. 1,50,000 fine and imposing a penalty of Rs. 25,000. The Tribunal rejected the argument that the DGFT notification did not apply, citing the bill of entry submission date post-notification issuance. The redemption fine was reduced due to excessive amount, but the overall order for confiscation and penalty imposition was affirmed.

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Issues: Appeal against order-in-original for confiscation of goods, applicability of DGFT notification, imposition of redemption fine and penalty.

Analysis:

1. The appellants appealed against the order-in-original that confiscated goods worth Rs. 14,35,518 under Section 111(d) of the Customs Act, allowing redemption on payment of Rs. 3,00,000 fine and imposing a penalty of Rs. 25,000.

2. The appellants imported 'Die blocks steel' and presented the bill of entry for release, but the goods were confiscated as the manufacturer was not registered with the Bureau of Indian Standards (BIS) as required by a DGFT notification dated 24-11-2000.

3. The appellants argued that the DGFT notification did not apply as the contract was made before its issuance, and even if it did, the non-registration was a technical lapse not warranting heavy penalties. They sought setting aside or modification of the order.

4. The learned SDR supported the correctness of the impugned order by the Commissioner.

5. After hearing both sides and reviewing the record, the Tribunal addressed the first contention regarding the applicability of the DGFT notification. The Tribunal rejected the argument that the notification did not apply, stating that the relevant date was the bill of entry submission date, which was after the notification's issuance, justifying the confiscation.

6. Moving to the second contention, the Tribunal acknowledged the breach of the notification's condition but found the redemption fine excessive. While the penalty was deemed appropriate, the Tribunal reduced the redemption fine from Rs. 3,00,000 to Rs. 1,50,000 considering the circumstances.

7. Ultimately, except for reducing the redemption fine, the Tribunal upheld the impugned order directing confiscation of goods, imposition of redemption fine, and penalty. The appeal was disposed of accordingly.

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