Tribunal reduces penalties for non-compliant imports, sets aside redemption fine.

The Tribunal set aside the redemption fine imposed on the appellant for re-exporting goods not conforming to FSSAI Regulations, citing legal precedents. The penalty imposed for importing non-compliant goods was reduced from Rs. 2 lakhs to Rs. 50,000 due to mitigating circumstances, partially allowing the appeal.

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Issues:
1. Redemption fine imposed on re-export of goods.
2. Penalty imposed for importing goods not conforming to FSSAI Regulations.

Issue 1: Redemption Fine Imposed
The appellant imported cloves of Sri Lankan origin, found not conforming to FSSAI Regulations, leading to an order for re-export with a redemption fine of Rs. 10 lakhs. The Commissioner (Appeals) reduced the fine to Rs. 3 lakhs. The appellant, willing to re-export, argued against the redemption fine citing legal precedents. The Tribunal, following the Apex Court's decision, held that a redemption fine cannot be imposed when goods are to be redeemed for export only. Consequently, the redemption fine was set aside.

Issue 2: Penalty Imposed
The appellant contended that there was no intent to import non-compliant goods, referencing the contract with the supplier. Despite this, the Tribunal found a violation of FSSAI Regulations, warranting a penalty under Section 112(a) of the Customs Act, 1962. However, considering the circumstances, the imposed penalty of Rs. 2 lakhs was deemed excessive. In the interest of justice, the penalty was reduced to Rs. 50,000. The impugned order was modified accordingly, partially allowing the appeal.

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