Option to destroy prohibited goods and refund of duty paid

[Pralhad Jadhav]

Hi All, need views on below:

1. FACTS

The goods were seized for not complying with FSSAI. Duties were already paid. SCN was issued and we filed a reply. OiO has been issued demanding redemption fine allowing reexport. Penalty is also levied under 112(a)(i).

2. Relevant provisions of the law

111(d),112(a) and 125

3. The Query

(i) Can we request for destruction of goods instead of reexport.

(ii) Do we have to pay redemption fine and penalty in case destruction is allowed?

(iii) Can we seek refund of duties under either options i.e. reexport or destruction.

AI Summary

Can importer seek destruction instead of re-export for seized olive oil; redemption fine and penalty still payable under s.112(a)(i) Imported olive oil was seized for failing FSSAI lead limits after duty payment; an SCN was issued and an OiO demanded redemption fine with re-export and penalty under s.112(a)(i). Querying whether destruction can substitute re-export, and whether redemption fine, penalty, or duty refund apply. Forum advice: destruction can be sought by writing to the jurisdictional Assistant/Deputy Commissioner with reasons; redemption fine and penalty remain payable even if destruction is allowed; duties are not refundable on either re-export or destruction. A standing circular permits destruction/replacement for defective imports for certain units, but DTA units do not automatically get that benefit.