2026-VIL-1831-CESTAT-AHM-CU
  1. Home
  2. 2026-VIL-1831-CESTAT-AHM-CU

CUSTOMS CESTAT Cases

Customs - Quantum of redemption fine under Section 125 and penalties under Sections 114(i) and 114AA of the Customs Act, 1962 for attempted export of restricted goods by misdeclaration - Appellant filed shipping bills for export of goods declared as Refractory Bed Material under CTH 69021090, which on testing were found to be Natural Garnet under CTH 25132030, export of which is permissible only through the canalizing agency under the DGFT Notification - Adjudicating authority rejected the declared description, classification and value, ordered confiscation, allowed redemption on payment of fine and imposed penalties under Sections 114(i) and 114AA, which was upheld by the Commissioner (Appeals) - Appellant contended that the fine and penalties are excessive, that penalty is not imposable absent deliberate or dishonest conduct, that the ingredients of Section 114AA were not established, and that redemption fine must be linked to market price and margin of profit - Whether the redemption fine and penalties require interference - HELD - The allegations being misdeclaration and misclassification of goods, the redemption fine, which works out to a reasonable proportion of the redetermined value, cannot be termed excessive in view of the seriousness of the allegations. The penalties under Sections 114AA and 114(i) are commensurate with the grave nature of the attempt to export Natural Garnet by misdeclaring its description. Fine and penalty being matters of discretion, an appellate body should not interfere merely because another view is possible, except on grounds of mala fides or extreme arbitrariness, none of which exists - The impugned order is upheld and the appeal is rejected on this issue.rnrn rnrnIssue 2: Imposability of redemption fine where goods are to be re-exported - Section 125 of the Customs Act, 1962 - Appellant contended that no redemption fine is imposable on goods which are to be re-exported - Respondent relied on the Larger Bench decision holding that redemption fine and penalty may be imposed even when permission for re-export is granted - Whether redemption fine is imposable on the ground that the goods are intended for re-export - HELD - The contention cannot be accepted since the case relates to attempted export of restricted goods by misdeclaring the description and classification, and is not a case of re-export of imported goods. The proper officer allowed redemption of the confiscated goods subject to conditions in exercise of discretionary jurisdiction, and the impugned order cannot be held to be against law - The contention is rejected.rnrn rnrnIssue 3: Disposal of confiscated goods by e-auction during pendency of appeal - Section 110(1A) of the Customs Act, 1962 - High Court authorised the Tribunal to examine the issue of e-auction of the confiscated goods and restrained the Respondent from conducting e-auction till then - Whether the e-auction of the confiscated goods is without authority of law or impermissible during pendency of the appeal - HELD - The Customs authorities initiated the e-auction under Section 110(1A) read with the relevant notifications, and it cannot be said that the e-auction is without authority of law. The appeal being finally disposed of by this order, the e-auction cannot be said to be undertaken during pendency of the appeal - The Respondent may proceed with the e-auction after issuing proper notice to the Appellant inviting objections within at least thirty days, in accordance with the Board instructions and after compliance with the relevant provisions of the Customs Act and applicable Circulars.
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

57th GST Council Decisions...
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?