Tribunal orders absolute confiscation of imported goods, denies redemption option. Appellant must pay fine, penalty upheld.

The Tribunal upheld the confiscation of imported goods but set aside the redemption option, ordering absolute confiscation. It allowed the appellant to re-export the goods on payment of a redemption fine of Rs. 2 crores, sustained a penalty of Rs. 1 crore, and denied the request for a demurrage waiver certificate.

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Issues Involved:
1. Confiscation and Redemption of Imported Goods
2. Permission to Re-export Confiscated Goods
3. Imposition of Penalty
4. Waiver of Demurrage Charges

Detailed Analysis:

1. Confiscation and Redemption of Imported Goods:
The appellant, M/s. Oscar Pvt. Ltd., imported 6479.30 MTs of Green Peas, which were restricted under DGFT Notification No. 37/2015-2020 dated 18.12.2019. The original authority confiscated the goods under Section 111(d) and 111(o) of the Customs Act, 1962, but allowed redemption on payment of a fine of Rs. 2 crores. The department appealed, arguing that allowing redemption negated the government’s intent behind the restriction. The Commissioner (Appeals) upheld the confiscation but set aside the redemption option, ordering absolute confiscation.

2. Permission to Re-export Confiscated Goods:
The appellant sought permission to redeem the goods for re-export, citing the Supreme Court’s judgment in Union of India Vs. Raj Grow Impex LLP & Ors., which allowed re-export under similar circumstances. The appellant argued that the Supreme Court’s directions should apply to all similarly situated importers. The department countered that the Supreme Court’s order was in personam and only applicable to the parties in that case. The Tribunal concluded that the principle of ‘Stare Decisis’ and uniform application of law warranted extending the same relief to the appellant, allowing re-export on payment of redemption fine.

3. Imposition of Penalty:
The original authority imposed a penalty of Rs. 1 crore under Section 112(a) of the Customs Act, 1962. The appellant requested leniency, citing the stay order from the High Court of Andhra Pradesh at the time of import. However, the Tribunal upheld the penalty, noting that the appellant had not appealed against the original order imposing the penalty, which had attained finality.

4. Waiver of Demurrage Charges:
The appellant sought a demurrage waiver certificate under Regulation 6(l) of the Handling of Cargo in Customs Area Regulation, 2009, which prohibits charging rent or demurrage on goods seized or detained by customs authorities. The Tribunal rejected this request, noting that the appellant imported the goods despite knowing the potential legal dispute and subsequent detention due to the violation of the notification. The Tribunal found no grounds for issuing a waiver certificate, emphasizing that the appellant’s actions were not in bonafide belief.

Conclusion:
The Tribunal modified the Commissioner (Appeals) order to allow the appellant to re-export the goods on payment of a redemption fine of Rs. 2 crores, while sustaining the penalty of Rs. 1 crore. The request for a demurrage waiver certificate was denied. The appeal was disposed of accordingly.

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