2008 (5) TMI 103 - AT - Customs

Tribunal Overturns Customs Fine: Emphasis on Bona Fides and Customs Compliance

The tribunal set aside the redemption fine and penalty imposed by the Commissioner of Customs in a case involving the confiscation of goods imported ... Request for re-export of the goods – appellant’s plea is that imported goods are not as per the instructions given to the foreign supplier - as per Board’s Circular 100/2003-Cus. if Commissioner is satisfied about bona fides of mistaken import, he may allow re-export - adjudicating authority has himself observed that there was mistake on the part of the foreign supplier – hence penalty & redemption fine are set aside – Re-export is permissible Issues:1. Confiscation of goods with redemption fine and penalty imposed by the Commissioner of Customs.Analysis:The judgment addresses the issue of confiscation of goods with redemption fine and penalty imposed by the Commissioner of Customs. The appellant contended that the goods imported were wrongly sent by the foreign supplier, who requested recall and permitted re-export. The adjudicating authority accepted the appellant's stand that the goods were shipped in a condition contrary to the importer's instructions due to the circumstances narrated by the foreign supplier. The tribunal noted that the importer had not ordered goods other than 'Terse' grade aluminium scrap. The Board's Circular No. 100/2003-Cus. dated 28-11-2003 allows re-export on payment of nominal penalty or without penalty if satisfied about the bona fides of the mistaken import. Since the adjudicating authority acknowledged the mistake by the foreign supplier, the tribunal found no justification for confiscation or imposition of penalty. Therefore, the tribunal set aside the redemption fine and penalty.This analysis highlights the tribunal's interpretation of the circumstances surrounding the mistaken import, the importer's instructions, and the applicability of the Board's Circular in determining the appropriate course of action regarding the confiscation of goods and imposition of penalties. The judgment emphasizes the importance of considering the bona fides of the importer and the circumstances leading to the mistaken import before deciding on penalties or confiscation. The tribunal's decision to set aside the redemption fine and penalty showcases a nuanced approach to balancing enforcement measures with the recognition of genuine errors in import transactions.