Tribunal permits goods clearance after penalty, bond requirement modified.

The Tribunal partially allowed the appeal, permitting clearance of goods to M/s Sunalco Alloys Pvt. Ltd. upon payment of redemption fine and penalty. The re-export condition was removed, and the appellant was required to verify eligibility and execute a bond in accordance with JNCH Public Notice No. 94/2011 dated 07.07.2011. The Tribunal upheld the penalty for misdeclaration but modified the order based on the possibility of clearing goods for home consumption to an eligible buyer with the necessary license.

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Issues:
Imposition of redemption fine under Section 125 of the Customs Act, 1962 for mis-declaration and non-compliance.

Analysis:
1. Factual Background: The appellant imported goods declared as "Aluminium Scrap Twang" but contained copper scrap druid. The Customs Act adjudication order directed confiscation with a redemption fine of Rs. 3,00,000 for re-export due to copper scrap druid being prohibited goods. A penalty of Rs. 2,00,000 was also imposed for wilful suppression and incorrect description.

2. Appellant's Argument: The appellant contended that copper scrap druid was not absolutely prohibited, suggesting clearance for home consumption was feasible. They highlighted holding a valid license from the State Pollution Control Board and cited a similar case where restricted goods were cleared for home consumption based on CBEC Circular and JNCH Public Notice. The appellant argued that the re-export condition made the confiscation redundant.

3. Respondent's Response: The respondent emphasized the appellant's violation of hazardous waste rules and misdeclaration. They defended the Commissioner (Appeals) order, asserting no interference was warranted.

4. Tribunal's Decision: After considering arguments and case records, the Tribunal found the appellant lacked a Central Pollution Control Board license and misdeclared goods. The Tribunal rejected the appellant's defense of difficulty in distinguishing goods and upheld the penalty for misdeclaration. However, acknowledging the possibility of clearing goods for home consumption to an eligible buyer with the required license, the Tribunal modified the order. The Tribunal allowed the appeal in part, removing the re-export condition upon payment of redemption fine and penalty as imposed by the Commissioner (Appeals).

5. Final Order: The Tribunal allowed the appeal partially, permitting clearance of goods to M/s Sunalco Alloys Pvt. Ltd. post verification of eligibility and bond execution by the appellant in accordance with JNCH Public Notice No. 94/2011 dated 07.07.2011.

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