Tribunal reduces redemption fine for substandard goods, orders refund & investigation.

The Tribunal upheld the Commissioner (Appeals) decision to reduce the redemption fine and penalty in a case involving substandard goods. The appellant's appeal seeking to maintain the original fine was rejected. The Tribunal directed the Chief Commissioner of Customs to investigate delays, release the goods for re-export, refund duty, and issue a detention certificate to the appellant. The revenue's appeal was dismissed, and the order was issued on 07.06.2023.

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Issues:
The issues involved in the judgment are the reduction of redemption fine and penalty by the Commissioner (Appeals) and the subsequent appeal filed by the Revenue against the same.

Reduction of Redemption Fine:
The appellant filed a stay petition seeking stay of the order reducing the redemption fine from Rs. 10.00 Lakhs to Rs. 1.00 Lakh and penalty from Rs. 2.00 Lakhs to Rs. 50,000/-. The appeal pertains to a consignment of 'Sri Lankan Areca Nuts' where the goods were found to be substandard and not fit for human consumption. The original authority confiscated the goods for being imported contrary to the prohibition imposed by FSSAI Act, 2006. The Commissioner (Appeals) reduced the redemption fine and penalty, allowing re-export of the consignment. The appellant argued that the reduction of redemption fine was not justified as it is calculated based on the landed cost of the goods. However, the Commissioner (Appeals) observed that the goods were freely importable, no misdeclaration was alleged, and the appellant may have suffered due to delays and deterioration of the goods.

Reduction of Penalty:
The Commissioner (Appeals) also reduced the penalty imposed under Section 112(a)(i) of the Customs Act, 1962 to Rs. 50,000/- citing the absence of malafide intention on the part of the appellant. The Commissioner relied on the case of M/s Bansal Industries for this reduction. Furthermore, the Commissioner noted that the appellant had paid the duty for the bill of entry and would be entitled to relief if the goods were ultimately re-exported.

Judgment and Directions:
The Tribunal upheld the order of the Commissioner (Appeals) reducing the redemption fine and penalty. It was observed that there was no infirmity in the Commissioner's decision considering the circumstances of the case. The Tribunal directed the Chief Commissioner of Customs, Delhi to inquire into the delay in allowing re-export of the goods and take appropriate action against the responsible officials. The impugned goods were ordered to be released immediately for re-export, and the duty was to be refunded to the appellant. Additionally, the appellant was to be given a detention certificate to claim waiver of detention/demurrage charges due to the negligence of customs officers.

Conclusion:
The appeal of the revenue was dismissed, and the order was pronounced on 07.06.2023. The Chief Commissioner of Customs, Delhi was to be informed of the decision for necessary action at their end.

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