TMI Blog2020 (3) TMI 770X X X X Extracts X X X X X X X X Extracts X X X X ..... ed goods allowed to the redeemed on a redemption fine, the sale proceeds which represent the goods, will be paid to the importer only after deduction of such fine. Thus, the redemption fine is to be charged from the importer while releasing the goods, the same also needs to be recovered from the sale proceeds which represent the consideration of the property. However, in view of the contradicting decisions on the matter at hand by the benches of the Tribunal, we refer the matter to Larger Bench on the issue whether the redemption fine and penalty, if any, imposed in the adjudication order needs to be recovered from the sale proceeds, if the confiscated goods are sold/disposed of by auction during the pendency of appeal . Appeal dispo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for confiscation of the impugned goods in 16 containers under Section 111(d) of the Customs Act, 1962 with an option to redeem the goods on payment of redemption fine of ₹ 20,00,000/- under Section 125 of the Customs Act, 1962 and imposed a penalty of ₹ 10,00,000/- under Section 112 of the Customs Act, 1962 on the importer feeling aggrieved, the importer filed an appeal before the Commissioner (Appeals). However, during the pendency of the appeal the goods were got auctioned by the department. The Commissioner (Appeals) held that the imported goods required an import licence as same are in the category of restricted goods, in terms of EXIM policy at the relevant time of import. Since, the importer appellant failed to furnish a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Commissioner (Appeals) set aside the order of payment of redemption fine of ₹ 20,00,000/- and also held that the penalty imposed to the extent of ₹ 10,00,000/- may be deducted out of the sale proceeds and the importer be paid back the sale proceeds as due. The relevant operating portion of the impugned order-in-appeal is reproduced as under :- I find that the appellant had not exercised their option of payment of RF and redeeming the goods after the outcome of the appeal before the Commissioner of Customs (Appeals), New Delhi and therefore, they cannot be compelled to pay the RF when they have no option left with them to redeem the goods. The redemption fine was required to be paid when the goods are redeemed by the impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms Central Excise, Chandigarh Versus Essma Woolen Mills (P) Ltd. [1994 (74) E.L.T. 0588 (Tribunal)]. The relevant extract from the order is reproduced below :- 4. I have considered the submissions made by both the sides and gone through the circumstances of the case. Merely because respondent did not exercise the option to redeem the goods within the stipulated period in order-in-original would not mean that they have abandoned their claim on goods particularly when it has come out that they had, in the meantime, filed the appeal to Collector (Appeals) against this order. In appeal memo the Revenue have submitted that appeal filed by the respondents should have been rejected in view of the fact that it was incumbent upon the responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... behalf of the respondent has argued that once the goods are not available for redemption, the redemption fine cannot be deducted from the sale proceeds. He has placed reliance on the Tribunal s order in their own case reported at 2017 (358) E.L.T. 1113 (Tri.-Del.) wherein the Hon ble Bench has observed as under :- 5. The goods imported are Rough Marble Blocks which require an import license. They are in the category of restricted goods, in terms of EXIM policy at the time of import. Since, the importer failed to submit a valid import license, the goods are liable for confiscation under Section 111(d) of the Customs Act. In view of the above, order of confiscation of the imported goods cannot be faulted. The redemption fine and penal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne, the sale proceeds which represent the goods, will be paid to the importer only after deduction of such fine. Thus, the redemption fine is to be charged from the importer while releasing the goods, the same also needs to be recovered from the sale proceeds which represent the consideration of the property. However, in view of the contradicting decisions on the matter at hand by the benches of the Tribunal, we refer the matter to Larger Bench on the issue whether the redemption fine and penalty, if any, imposed in the adjudication order needs to be recovered from the sale proceeds, if the confiscated goods are sold/disposed of by auction during the pendency of appeal . 8. The miscellaneous applications as well as appeal are disposed o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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