Customs Tribunal: Appellant wins, goods imported in good faith. Confiscation order set aside, refund granted with interest.

The Tribunal ruled in favor of the appellant, finding that the goods were imported in good faith and in compliance with the Customs Act. The impugned order confiscating the goods was set aside, and the appellant was entitled to a refund of the redemption fine and penalty paid. The Tribunal granted interest on the refund amount to be paid within 45 days, allowing the appeal with consequential benefits.

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Issues:
1. Whether the goods imported by the appellant were rightly confiscated under Section 111(d) of the Customs Act with an option to redeem on payment of a fine and imposition of penalty under Section 112(a) of the Customs Act.

Analysis:
The appellant imported two consignments of seamless pipes and filed Bills of Entry in January 2009. Initially, the import of such goods was allowed 'free,' but a subsequent amendment by DGFT imposed restrictions. However, this restriction was lifted later. The appellant had applied for opening a Letter of Credit before the restriction was enforced, and the Bills of Entry were filed after the restriction was lifted. The appellant also applied for an import license, which was issued by DGFT specifically covering the goods in question. The Tribunal found that the appellant had imported the goods in good faith, taking effective steps for importation when the goods were freely importable and when the restriction was lifted. The appellant had not violated any provisions of the Customs Act, and the Tribunal set aside the impugned order, ruling in favor of the appellant. The Tribunal held that the appellant was entitled to a refund of the redemption fine and penalty paid under protest at the time of clearance, with interest to be granted within 45 days. The appeal was allowed with consequential benefits.

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