Tribunal allows Revenue's appeal on redemption fine for bonded goods under Customs Act

The Tribunal partially allows the Revenue's appeal, specifically on the imposition of the redemption fine for goods imported under bond. It confirms duty liability under Section 28 (2) of the Customs Act, 1962, emphasizing the continuous obligation and conditional nature of goods cleared under bond, leading to the necessity of imposing a redemption fine. The matter is remanded for the adjudicating authority to ensure appropriate notice, a fresh hearing, and a comprehensive order considering defense plea, law, and evidence.

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Issues: Duty liability confirmation under Section 28 (2) of the Customs Act, 1962; Imposition of redemption fine for goods imported under bond.

Issue 1: Duty liability confirmation under Section 28 (2) of the Customs Act, 1962
The judgment addresses the issue of duty liability confirmation under Section 28 (2) of the Customs Act, 1962. The Appellate Tribunal notes that while the duty was confirmed without specifying the section in the adjudication order, the demand arose under Section 28. Referring to the case of CCE Calcutta Vs Pradyumna Steel Ltd., the Tribunal holds that the mere omission of the provision of law does not invalidate the order. Consequently, the duty liability is deemed to have been confirmed under Section 28 (2) of the Customs Act.

Issue 2: Imposition of redemption fine for goods imported under bond
The judgment delves into the imposition of a redemption fine for goods imported under bond. The Tribunal acknowledges the Revenue's argument that goods imported under bond entail a continuous obligation for the importer to fulfill bond conditions. It clarifies that such imports do not constitute absolute clearance but conditional clearance, thereby imposing a concurrent liability on goods cleared under bond. The Tribunal remands the matter to the adjudicating authority for the imposition of a redemption fine, emphasizing the need for appropriate notice, a fresh hearing of the appellant, and a comprehensive order taking into account defense plea, law, and evidence.

In conclusion, the Tribunal allows the Revenue's appeal partially, specifically concerning the imposition of the redemption fine for goods imported under bond. The judgment provides clarity on the duty liability confirmation under Section 28 (2) of the Customs Act, 1962, and underscores the continuous obligation and conditional nature of goods cleared under bond, necessitating the imposition of a redemption fine in such cases.

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