Tribunal permits aircraft redemption on payment of fine, grants sale permission pending final hearing.

The Tribunal allowed the redemption of the aircraft upon payment of a Rs. 7 crore fine by the appellant, directing the issuance of a permission/no objection certificate for its sale. The case was scheduled for a final hearing in January 2022, ensuring justice and revenue considerations pending the ultimate decision.

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Issues:
1. Competency of officers of Directorate of Revenue Intelligence to issue show cause notices under Section 28(4) of the Customs Act.
2. Permission to sell the aircraft seized by the Commissioner of Customs (Preventive) under Section 111(o) of the Customs Act.
3. Redemption of the aircraft on payment of redemption fine of Rs. 7 crore.
4. Issuance of permission/no objection certificate to sell the aircraft upon redemption.

Analysis:

Competency of Officers to Issue Show Cause Notices:
The appellant argued that the officers of Directorate of Revenue Intelligence are not competent to issue show cause notices demanding duty under Section 28(4) of the Customs Act, citing a judgment by the Hon'ble Supreme Court in the case of Canon India. The show cause notice in this case was issued by the Commissioner of Customs (Preventive), who was deemed similarly incompetent. The appellant requested the impugned order to be set aside on this ground. The Department sought time to decide on appointing a Special Counsel, leading to an adjournment. The miscellaneous application filed by the appellant sought permission to sell the aircraft seized by the Commissioner of Customs (Preventive).

Permission to Sell Seized Aircraft:
The appellant imported the aircraft under an exemption notification but failed to fulfill certain conditions, leading to its seizure by the Commissioner of Customs (Preventive). A show cause notice was issued, resulting in the confiscation of the aircraft under Section 111(o) of the Customs Act. The Commissioner ordered redemption by paying a fine of Rs. 7 crore or invoking the bank guarantee. The appellant, affected by COVID, found a buyer willing to purchase the aircraft. They agreed to the bank guarantee of Rs. 7 crore being used for redemption and sought permission to sell the aircraft.

Redemption of the Aircraft:
The Tribunal decided to allow redemption of the aircraft on payment of the redemption fine of Rs. 7 crore by the appellant, either in cash or by invoking the bank guarantee. Upon redemption, the Deputy Commissioner of Customs was directed to issue a permission/no objection certificate for the sale of the aircraft. The Tribunal clarified that this decision did not determine the merits of the case and scheduled a final hearing for January 2022.

Conclusion:
The Tribunal disposed of the miscellaneous application, allowing the redemption of the aircraft on payment of the redemption fine of Rs. 7 crore by the appellant and directing the issuance of a permission/no objection certificate for the sale of the aircraft upon redemption. The case was set for a final hearing in January 2022, maintaining the interest of justice and the revenue pending the final decision.

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