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2014 (2) TMI 69 - AT - CustomsImport of sandalwood - Import made without obtaining proper license - Confiscation of goods - Goods released on bank guarantee - Bank guarantee encashed - Imposition of redemption fine - Held that:- proforma invoice is dated 30.03.2006, the remittance for the value of sandalwood to be imported was also made on 30.03.2006; the customs invoice, the fumigation certificate and the Bill of lading, though issued later establish a concretised agreement for export of sandalwood prior to 07.04.2006 (when the restriction on import of sandalwood were issued by the policy circular). The agreement to import the sandalwood thus got crystallised prior to 07.04.2006 - since the import of the sandalwood was bonafide, there is no justification for imposing a redemption fine or confiscating the goods; and that existence of a concluded contract could be inferred from other circumstances, even in the absence of an irrevocable letter of credit. The material on record establishes on the basis of the relevant circumstances that an agreement between the parties for the export and import was entered into and had crystallised prior to the change in the policy - where an importer has entered into a contract in good faith, at a time when goods were importable freely, without restrictions; and had no means to forseeing restrictive changes in the import policy, there is no justification for imposing a redemption fine - Decided in favour of assessee.
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