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 ...
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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 Ltd., the HC held that re-export could be permitted and that payment of redemption fine was not a precondition for re-export; consequently, the redemption fine requirement was set aside. The further issue was the quantum of penalty: considering the value of the goods, the HC found the penalty imposed to be grossly excessive and reduced it, directing payment within two weeks, failing which re-export would not be allowed. The writ petition was 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.
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