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2016 (10) TMI 334 - HC - CustomsDemand of customs duty on confiscated goods - Hospital - import of Echo Cardiography system - exemption as per Notification No.64/1988 dated 01/03/1988 - non-compliance of condition as mentioned in N/N. 64/1988 - whether the petitioner was justified in holding that when the equipment imported by the petitioner is confiscated and when the petitioner has not chosen the option to redeem the equipment, there is no reason to impose a further obligation to pay duty. The contention is that under Sec.125 of the Act, the authority can pass only alternative orders - Either confiscation with penalty under Section 111(o) and 112(a) of the Customs Act or confiscation under Section 111(o) with an option to pay fine with payment of duty in respect of goods in lieu of confiscation. Held that: - A perusal of the provisions of Chapter XIV would indicate that there is no specific provision to impose duty, if the goods are confiscated. The liability to pay customs duty arises only when fine is imposed in lieu of confiscation. Though such an order can be passed, if the petitioner does not pay fine in lieu of confiscation, the remedy of the respondent is only to confiscate the goods. In such an event, there is no provision to recover the customs duty and other charges. The decision in the case of Fortis Hospital Ltd. v. Commr. of Custom [2015 (4) TMI 348 - SUPREME COURT] apply. The equipment could be confiscated as the petitioner is not availing the option of payment of redemption fine - demand of customs duty when the equipment is confiscated is not permissible by law - petition allowed - decided in favor of petitioner.
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