2026-VIL-1570-CESTAT-BLR-CU
  1. Home
  2. 2026-VIL-1570-CESTAT-BLR-CU

CUSTOMS CESTAT Cases

Customs - Confiscation and redemption of second-hand restricted goods, Exercise of discretion under Section 125 Customs Act, Distinction between restricted and prohibited goods - Appellant imported Posalux Machine DLR Measuring Unit which upon examination were found to be second-hand goods restricted as per the Foreign Trade Policy. The original adjudicating authority held that the goods were liable to be redeemed on payment of a redemption fine under Section 125 of the Customs Act 1962 and imposed a penalty under Section 112(a) - Commissioner (Appeals) reversed the decision holding that the goods were liable for absolute confiscation without redemption and enhanced the penalty under Section 114AA - Whether goods found to be restricted under Foreign Trade Policy can be subjected to absolute confiscation without exercise of discretion to offer redemption fine under Section 125 - HELD - Section 125 of the Customs Act 1962 provides that where confiscation of goods is authorised by the Act, the officer adjudging it may in case of goods the importation whereof is prohibited under the Act or under any other law give to the owner an option to pay a redemption fine. Before proceeding with absolute confiscation, the adjudicating authority must clearly construe whether the goods in question are liable for absolute confiscation or not - As per the paragraphs 2.31 (II) and para 2.10 of Foreign Trade Policy 2015-2020 the goods are found to be restricted only. Therefore, there is no reason for absolute confiscation of the goods, since the goods are found to be restricted as they are second hand goods, the same can be allowed on redemption fine - The original authority was justified in releasing the goods on payment of redemption fine. The Commissioner (Appeals) failed to provide specific reasons for absolute confiscation and the enhancement of penalty under Section 114AA after setting aside the penalty under Section 112(a) is misplaced as the two provisions operate on different premises. - The impugned order is set aside and the appeal is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GST Critical issues: ITC on...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?