2018 (8) TMI 1606 - AT - Customs

Release of Tug on paymnet of redemption fine - Held that - There is no error apparent on the face of the record in the Misc. Order dated 10.7.2018 which was passed after considering the submissions of both the parties - Since in the present case the amount involved is more than Rs. 13 crores and the Tribunal vide its Misc. Order dated 7.5.2014 has allowed the early hearing application and the matter was also listed for final hearing on 4.9.2014 but could not be heard finally on account of non-availability of the Bench - application disposed off.

Summary

Issues:
1. Appeal against Order-in-Original dated 20.1.2014 confirming demand and confiscation.
2. Redemption of tug and rig on payment of fines under Section 125 of the Customs Act, 1962.
3. Bank Guarantee execution and replenishment.
4. Request for clearance of tug and rig on payment of redemption fines.

Analysis:
1. The applicant filed an appeal against the Order-in-Original dated 20.1.2014, confirming a demand of Rs. 1,32,13,016 on tug 'M.V. Shunter' and Rs. 11,48,43,512 on rig 'Mercury Focus', with additional interest and penalties. The impugned order also included confiscation of the tug and rig, allowing redemption on payment of fines under Section 125 of the Customs Act, 1962.

2. The Tribunal, in Misc. Order No.21136-21139/2014, allowed the early hearing of the appeal and kept the Bank Guarantee of Rs. 3.5 crore alive during the appeal's pendency. Subsequently, a letter dated 11.06.2018 rejected the request to release the tug on payment of redemption fine. The Tribunal, in an order dated 10.7.2018, directed the release of the tug on payment of redemption fine and appropriation of duty liability from the Bank Guarantee, with a replenishment requirement.

3. The applicant sought to clear the tug on payment of redemption fine and a Bank Guarantee without duty appropriation. The learned counsel argued against rectification of the interim order, while the AR opposed the applicant's request for review, stating it was an interim order without scope for rectification.

4. After hearing both parties and reviewing the records, the Tribunal found no error in the Misc. Order dated 10.7.2018. The Tribunal dismissed the applicant's contention, upholding the previous order's validity. Given the substantial amount involved and the earlier grant for early hearing, the Tribunal directed the appeal to be listed for final disposal on 19.11.2018 due to non-availability of the Bench earlier.

5. In conclusion, the Tribunal dismissed the application seeking clearance without duty appropriation, upheld the previous order's validity, and directed the appeal to be heard for final disposal on 19.11.2018, considering the significant amount at stake and the earlier grant for early hearing.

(Order pronounced and dictated in Open Court on 27/08/2018.)