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2023 (7) TMI 593 - AT - CustomsConfiscation of imported goods - imposition of redemption fine and penalty - import of used tyres - mis-declaration of the country of origin - allegations regarding involvement of appellant in producing fraudulent documents for clearance - HELD THAT:- The reliance of the appellant in the matter of M/s Baby Marine Seafood Retail Pvt. Ltd. [2021 (4) TMI 1089 - CESTAT BANGALORE], this Tribunal set aside the order of redemption fine and penalty imposed by the Adjudication Authority on entirely different circumstances and ratio of the said finding is not applicable in appellant’s case. Similarly in the matter of Allen Bradley India ltd. [1991 (8) TMI 192 - CEGAT, NEW DELHI], this Tribunal has set aside the fine and penalty imposed by the Adjudicating Authority and permitted the appellant to re-export the goods. Similarly in the matter of Agarwal Industries Corporation Ltd.(Supra) omission on the part of the appellant was regarding the mis-declaration of the country of origin and subsequently the appellant had taken effective steps and cleared the goods on furnishing license for clearance of goods. In the present case, there is no evidence to substantiate the allegations regarding involvement of appellant in producing fraudulent documents for clearance and adjudication authority categorically stated that appellant was not knowingly involved in the creation of false DGFT license. Thus appellant can be treated only as a victim of fraud committed by the co-noticee Shri Ravi Shekhar Jha. For that reason, no penalty can be imposed on him under Section 112 A of the Customs Act, 1962. Redemption fine - HELD THAT:- Though the appellant is not involved in the fraudulent activity, the goods imported by the appellant is illegally imported without valid license and for that reason, goods are liable for confiscation. There is no allegation of undervaluation and also there is no finding regarding the margin of profit earned by the appellant through such import. The goods were detained since 25.03.2019 and only after the directions by the Hon’ble High Court vide order dated 24.07.2019, it was released. Thus the appellant had faced financial loss due to delay in clearance of goods. Considering the fact that the goods are not prohibited to import, the redemption fine of Rs.5 lakhs is considered reasonable for the omission on the part of appellant to produce valid import license for clearing the goods - Order of confiscation is upheld. However, the redemption fine imposed by the Adjudication Authority is reduced to Rs. 5 lakhs and penalty imposed to the appellant under Section 112 of the Customs Act, 1962 is set aside. Thus appeal is partially allowed.
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