2009 (7) TMI 983 - AT - Customs

Court rules in favor of importer, partially allowing appeal and setting aside redemption fine

The court partially allowed Appeal No. C/182/03 by setting aside the redemption fine, but dismissed Appeal No. C/186/03. The judge ruled in favor of the ... Redemption fine - Penalty - Imposition of Issues:Violation of import license requirement, confiscation of imported machinery, imposition of fine and penalty, applicability of Section 125 of the Customs Act, 1962, liability of importer and partner, redemption of machinery, Tribunal's decision in Mudra Offset case.The case involved the import of secondhand printing machinery without an import license under the actual user condition of EXIM Policy 1997-2002. The machinery was subsequently sold to different entities. The Additional Commissioner of Customs confiscated the machines and imposed a fine of Rs. 2,50,000/- on the importer, along with penalties on the importer and a partner. The Commissioner (Appeals) upheld the fine and penalties but reduced the penalty on the partner. The main issue was whether the redemption option for the machinery should have been given to the purchasers instead of the importer.The judge, after hearing both sides, found merit in the importer's argument that the redemption of the machinery should have been offered to the purchasers as per Section 125 of the Customs Act, 1962 and the Tribunal's decision in the Mudra Offset case. Consequently, the fine imposed on the importer was set aside. However, the importer remained liable for penalties due to the violation of the actual user condition. The penalty on the partner was also upheld based on the findings against him by the lower authorities.In the final decision, Appeal No. C/182/03 was partly allowed by setting aside the redemption fine, while Appeal No. C/186/03 was dismissed. The judgment highlighted the importance of correctly applying the provisions of the Customs Act and relevant legal precedents in cases involving the importation and sale of goods under specific conditions and licenses.This judgment serves as a reminder of the legal obligations and consequences related to importation under specific conditions and the importance of adhering to the provisions of the Customs Act to avoid penalties and confiscation of goods.