Tribunal reduces penalty for late re-export, eliminates redemption fine, in judgment dated 11.05.2018

The Tribunal set aside the redemption fine imposed on the appellant for not re-exporting containers within the prescribed time period, citing that the confiscated containers were not available for confiscation. The penalty was reduced from Rs. 1 lakh to Rs. 50,000 due to the violation of the re-export condition. The decision balanced acknowledging the violation with mitigating the penalty amount. The appeal was disposed of with the redemption fine eliminated and the penalty reduced to Rs. 50,000, with the judgment pronounced on 11.05.2018 by Tribunal members Shri Ramesh Nair and Shri Raju.

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Issues:
1. Imposition of redemption fine and penalty for not re-exporting containers within the prescribed time period under Notification No. 104/94-Cus dated 16.3.1994.

Analysis:
The case involved the appellant importing containers in 1996 under an exemption that required re-export within six months. The Department claimed that 31 containers were re-exported after the deadline, leading to the confiscation of 26 containers valued at Rs. 7,80,000/- and 5 containers valued at Rs. 1,60,000/-. Additionally, a penalty of Rs. 1 lakh was imposed. The appellant contested the redemption fine and penalty, arguing that since the confiscated containers were never seized or released provisionally, redemption fine should not apply. The appellant cited relevant judgments to support this argument.

The Tribunal considered the submissions and focused on the issue of redemption fine and penalty. It noted that since the confiscated containers were neither seized nor available for confiscation, the redemption fine could not be imposed. This decision aligned with a previous ruling by the Larger Bench of the Tribunal in the case of Shiv Kripa Ispat Pvt. Ltd. The Tribunal set aside the redemption fine based on this reasoning.

Regarding the penalty, the Tribunal acknowledged the violation of the re-export condition under the notification. Despite this violation, considering the overall circumstances, the penalty was reduced from Rs. 1 lakh to Rs. 50,000. The Tribunal's decision reflected a balance between acknowledging the violation and mitigating the penalty amount based on the case specifics.

Ultimately, the appeal was disposed of with the redemption fine set aside and the penalty reduced to Rs. 50,000. The judgment was pronounced on 11.05.2018 by the Tribunal members Shri Ramesh Nair and Shri Raju.

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