Tribunal rectifies mistake in customs case, directs department to pay balance.

The Tribunal granted the application for rectification of mistake by the Collector of Customs regarding the redemption fine for a confiscated lorry. The Tribunal modified its order, directing the department to pay the respondent the balance of Rs. 17,000 after deducting the redemption fine and any other Customs charges. The Tribunal highlighted the department's failure to disclose the lorry's sale during the appeal and emphasized that the modification did not prejudice the respondent's rights to pursue further legal remedies. The department was instructed to make the payment promptly to ensure compliance with the law.

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Issues:
Application for rectification of mistake apparent from the records in respect of the impugned order of the Tribunal dated 18-2-1986 in Customs Appeal No. 44 & 45/86.

Analysis:
The Collector of Customs, Madras, filed an application under Section 129(B)(2) of the Customs Act, 1962, seeking rectification of a mistake in the Tribunal's order modifying the redemption fine for a confiscated lorry. The Tribunal had reduced the fine from Rs. 12,000 to Rs. 5,000 without knowledge of the lorry being sold for Rs. 17,000 on 29-11-1985, a fact not disclosed during the proceedings. The application aimed to rectify the order and direct payment of the balance to the respondent after deducting the redemption fine.

The respondent's counsel argued that the application was not maintainable as the mistake was on the part of the Collector of Customs for not informing the Tribunal about the lorry's sale while an appeal was pending. The counsel contended that the department's actions were deliberate, intentional, and mala fide, justifying a claim for damages. Additionally, a lawyer's notice under Section 80 of the Civil Procedure Code had been issued by the respondent, claiming damages for the department's conduct.

The Tribunal, considering the submissions, noted the department's failure to inform about the lorry's sale despite an ongoing appeal. The delay in filing the rectification application was also highlighted, with the order being passed one and a half years after the sale. The Tribunal acknowledged that the original order was based on incorrect information, as the lorry was not available for redemption. Consequently, the Tribunal modified the order, directing the department to pay the respondent the balance of Rs. 17,000 after deducting the redemption fine of Rs. 5,000 and any other Customs charges.

The Tribunal emphasized that the modification did not prejudice the respondent's rights to pursue further legal remedies. It further directed the department to send the amount due to the respondent by cheque within a week from the receipt of the order, ensuring compliance with the law and facilitating resolution of the matter.

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