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2007 (2) TMI 534 - AT - CustomsClaim for re-export of the goods - Confiscation of goods - import made by unknown persons and without IE Code - goods became tainted as “prohibited”, thereby attracting Section 111(d) - Commissioner turned down the request of the appellants for permission to re-export the goods - HELD THAT:- The appellants were genuinely transacting business, in the normal course of international trade, with M/s. Arks Appliances P. Ltd. When M/s. Arks Appliances P. Ltd. expressed their inability to take delivery of the goods on account of financial problems, the appellants advised their shipping agents to make arrangements for reshipment of the goods to Dubai. The shipping agents informed the appellants that they were taking necessary steps for such reshipment. Later on, they informed the appellants that the DRI had destuffed the container and seized the goods for investigations. These facts were stated by the appellants in their letter addressed to the Consulate General, who was a senior officer of Customs. Earlier, in a letter, M/s. Samwin Hong Kong Ltd. (who had supplied the goods to the appellants) had informed the Commissioner that the appellants were the rightful owners of the goods and were eligible to get the same back, as the ultimate buyer in Chennai had failed to take delivery. From all these documentary materials, which were not examined by the Commissioner, it would appear that the appellants were only doing genuine business in relation to the subject goods and were not colluding with their Indian customer. Therefore we hold that the appellants are entitled to claim re-export of the goods. Against such a claim, the absolute confiscation of the goods by the Commissioner is bad in law. He should have permitted the appellants to redeem the goods on payment of a reasonable fine, for the purpose of re-export. In the result, while upholding the confiscation (not absolute) of the goods, we direct the lower authority to allow the appellants to redeem the goods, for the purpose of re-export, on payment of a fine to be determined by the Commissioner u/s 125 of the Customs Act by taking into account the present market value of the goods. The party shall be given an effective opportunity of being heard on what should be the fine to be paid by them for redeeming the goods for the purpose of re-export. The appeal is disposed of.
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