2005 (9) TMI 112

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....analysis by the Port Health Officers the goods were found to be not in conformity with the general standards and hence violated the provisions of the Prevention of Food Adulteration Act, 1954. The dates were infected with insects. Original authority had therefore confiscated the goods under S.111(d) of the Customs Act read with S.6 of the Prevention of Food Adulteration Act since goods were prohibited for import under S. 111 of the Customs Act. Consignment therefore could not be cleared. According to the applicant, suppliers of cargo M/s. Al Dahamosha Trading, Ajman U.A.E. had agreed to take back the goods. Request was made to the Customs Authorities at Cochin to re export the goods in terms of the instructions contained in M.F.D.R. Circula....

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....d that when returned to the supplier they had expressed willingness to take back the goods. In any view, counsel submitted that there is no wilful complexity on the part of the importer. 5.Sri John Varghese, Assistant Solicitor General, appearing for the Department, on the other hand, contended that the Tribunal is justified in imposing redemption fine and it was also pointed out that non imposition of penalty was to the advantage of the applicant. 6.The sole question as we have already indicated, comes up for consideration in this case is whether the adjudicatory authority was justified in imposing redemption fine in terms of S. 125 of the Customs Act, relevant portion of S. 125 is extracted below. "Whenever confiscation of any go....

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....oods should not have been confiscated and redemption fine should not have been imposed. 8.We find it difficult to accept this contention. Apex Court in Union of India v. Mustafa and Najibai Trading Co. [1998 (101) E.L.T. 529] held that mens rea is not essential for invoking the power of confiscation under S.111 of the Customs Act. S. 111 empowers the Customs Authorities to confiscate imported goods if any of the provisions contained in the sub clauses is satisfied. S. 112 authorises imposition of penalty for improper importation of goods. S. 125 says that the authority shall grant option to owner or the person from whose possession goods have been seized to pay fine in lieu of confiscation. Once the goods are confiscated unless the impor....