2001 (12) TMI 83 - HC - Customs

Re-export of confiscated imported goods: redemption fine not required, penalty cut as excessive, payment deadline imposed.

The dominant issue was whether the importer could re-export confiscated articles without payment of redemption fine. Applying the SC ruling in Siemens ... Entitlement to re-export the articles - penalty regarding payment of redemption value for the articles which are brought from Singapore - HELS THAT:- It appears that the question relating to re-export is covered by the decision of the Supreme Court rendered in the case of Siemens Limited v. Collector of Customs [1999 (8) TMI 84 - SUPREME COURT]. Following the same, there cannot be any doubt that the petitioner is entitled to re-export the articles in question and for the abovesaid purpose, it is not necessary for him to pay redemption fine as imposed by the authorities. keeping in view the relevant value of the articles concerned, appears to be grossly high and interest of justice would be met by reducing the penalty and such amount should be paid by the petitioner within a period of two weeks from the date of receipt of this order. Only after the amount is paid, the petitioner would be permitted to re-export the items concerned. In the result, the Writ Petition is partly allowed. Issues Involved: The petitioner challenged orders directing payment of redemption value for articles brought from Singapore, seeking to re-export them without paying redemption value.Summary:Issue 1: Redemption Value and Re-export The petitioner contested orders to pay redemption value for articles from Singapore, expressing intent to re-export instead of using or selling within India. The Supreme Court decision in Siemens Limited v. Collector of Customs supports the right to re-export without paying redemption fine.Issue 2: Imposition of Penalty Petitioner's counsel argued against a penalty of Rs. 33,000, citing non-importation and non-use/sale of the articles in India. Department's counsel defended the penalty imposition for alleged violations.Judgment: The court found the penalty amount excessively high considering the circumstances and reduced it to Rs. 15,000. The petitioner must pay this reduced penalty within two weeks to re-export the items, allowing the writ petition in part with no costs.