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2021 (3) TMI 1389 - AT - CustomsConfiscation of goods - marble blocks - restricted goods or not - When the order confiscating the goods has been issued and the party has not opted to pay fine in lieu of confiscation, then would the sale proceeds remain with the Government if the goods are auctioned or they have to be paid to the importer after deduction of such payment or without such deduction? HELD THAT:- The records indicate that it was only on April 28, 2014 that the respondent informed the adjudicating authority that it had filed an appeal against the order passed by the Additional Commissioner and was awaiting orders - there is nothing on the record to indicate whether any application was filed by the respondent for recall of the order 20.08.2013 by which the appeal was dismissed nor the date on which the application for condoning the delay was filed by the respondent has been mentioned. What is important to notice is that the Commissioner (Appeals) has also ordered for payment of the entire sale proceeds to the respondent after deduction of the penalty amount. Section 126 of the Customs Act provides that where any goods are confiscated under the Act, such goods shall thereupon vest in the Central Government. The respondent did not make any request for either the redemption of the goods or the sale proceeds and, therefore, a direction for payment of the sale products to the respondent could not have been issued. Of course, the redemption fine can be imposed only when a request for redemption of the “goods” or the “sale proceeds” is made. Imposition of the penalty is independent of the request for redemption and can be imposed under section 112 of the Customs Act. When the order confiscating the goods has been issued and the party has not opted to pay fine in lieu of such confiscation, then the goods can be sold and the sale proceeds would vest with the government. Penalty can still be imposed under section 112 of the Customs Act. An order for payment of all sale proceeds without deduction of redemption fine cannot, therefore, be issued - The issue as to whether the party can still opt to pay fine in lieu of such confiscation at this stage, has not been considered or decided by this Larger Bench and it will be open to the respondent to raise this issue before the Division Bench, if it is permissible in law to raise this issue at this stage.
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