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2020 (3) TMI 860 - HC - CustomsImposition of redemption fine in lieu of confiscation of conveyance - Interpretation of statute - section 115(2) of The Customs Act, 1962 - seizure and confiscation of Diesel Oil - illegal import or not - HELD THAT:- The proviso to sub-section (2) of section 115, categorically provides that where any conveyance is used for the carriage of goods or passengers for hire the owner of any conveyance shall be given an option to pay in lieu of the confiscation of the conveyance “a fine not exceeding the market price of the goods” which are sought to be smuggled or the smuggled goods, as the case may be. Clearly, therefore, the redemption fine which can be imposed in lieu of the confiscation of the conveyance should not exceed the “market price of the goods which are sought to be smuggled or smuggled goods”. The adjudicating authority having found that the respondent had illegally imported/smuggled 150 MT of diesel oil valued at ₹ 75,00,000/- into the tug MV Al- Vard, with an intention to use the same for plying inside the sea without payment of duty thereon, confiscated the goods. The adjudicating authority also imposed customs duty amounting to ₹ 12,71,406/-. Further, the adjudicating authority found that tug MV Al-Vard valued at ₹ 6,75,00,000/- was found utilized in illegal import of diesel oil and ordered confiscation of the tug MV Al-Vard under sub-section (2) of section 115 of the Act of 1962. Having observed thus, the adjudicating authority in the operative portion, ordered confiscation of tug MV Al-Vard having assessable value of ₹ 6,75,00,000/- and imposed redemption fine of ₹ 1,75,00,000/- in lieu of confiscation under the proviso to sub-section (2) of section 115 of the Act of 1962 on the respondent - it is not now open to the appellant to contend that the proviso to sub-section (2) of section 115 is applicable only in the cases where conveyance is used for the carriage of goods or passengers for hire for smuggling of the goods and since the tug was not hired the proviso to subsection (2) of section 115 of the Act of 1962 is not at all applicable to the facts of the present case. The Tribunal, having regard to the proviso to sub-section (2) of section 115 of the Act of 1962, has observed that the maximum fine on the conveyance can be an amount not exceeding the market price of the goods which are sought to be smuggled or the smuggled goods, as the case may be, and held that the maximum redemption fine which can be imposed cannot be more than ₹ 51,82,850/- - Thus, the Tribunal, on a correct interpretation of the proviso to sub-section (2) of section 115 of the Act of 1962 has held that the maximum fine on the conveyance cannot exceed the value of goods sought to be smuggled or the smuggled goods. The view taken by the Tribunal do not suffer from any legal infirmity so as to give rise to any question of law, much less, a substantial question of law, warranting interference - appeal dismissed.
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