High Court rules for respondent, overturning Larger Bench decision. No appeal to Supreme Court. Tribunal upholds High Court ruling.

The High Court ruled in favor of the respondent, setting aside the decision of the Larger Bench. The High Court found no justification for adjusting the redemption fine after the goods were sold by the revenue. The department accepted the High Court's decision, and no further appeal was pending before the Supreme Court. The Tribunal upheld the impugned order as the High Court had resolved the legal issue in favor of the assessee, and the decision had become final. The Revenue's appeal was dismissed, and the impugned order was upheld.

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Issues involved:
The issues involved in this case include the appeal filed by the Revenue to challenge the order passed by the Commissioner of Customs (Appeals), New Delhi, which partly allowed the appeal of the respondent by setting aside the order for payment of redemption fine but upholding the imposition of penalty.

Facts of the case:
The respondent imported marble/slabs requiring a license which they did not possess. The goods valued at Rs. 59,07,768/- could not be cleared within the stipulated time. The adjudicating authority confiscated the goods and imposed a redemption fine of Rs. 20,00,000/- and a penalty of Rs. 10,00,000/- on the respondent. The Commissioner (Appeals) initially dismissed the appeal as not maintainable due to a delay in filing, but later allowed the appeal partly, setting aside the redemption fine and directing the sale proceeds to be paid after deducting the penalty amount.

Tribunal's decision:
During the appeal hearing, conflicting decisions were cited. The matter was referred to a Larger Bench which held that once goods are auctioned, they can only be redeemed on payment of redemption fine. The Larger Bench also stated that sale proceeds cannot be paid without deducting the redemption fine. The question before the Larger Bench was whether sale proceeds should remain with the government or be paid to the importer after deduction. The Larger Bench concluded that sale proceeds would vest with the government if the goods are auctioned.

High Court's decision:
The respondent filed an appeal in the High Court which ruled in their favor, setting aside the decision of the Larger Bench. The High Court found no reason for the adjustment of redemption fine after the goods were sold by the revenue. The High Court's decision was accepted by the department, and no further appeal was pending before the Supreme Court.

Conclusion:
The Tribunal upheld the impugned order as the High Court had decided the question of law in favor of the assessee, and the decision had attained finality. The Revenue's appeal was rejected, and the impugned order was upheld.

(Order Pronounced on 03.04.2023)

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