Page 52 - ELT_1st June 2020_VOL 372_Part 5th

A176 EXCISE LAW TIMES [ Vol. 372

(ii) In case of exempted goods, lower of the following
amounts :
(a) 2% of the value of the goods
(b) Rs. 25,000
4. The proper officer adjudging the matter, in every case where he
proposes to confiscate the goods liable for confiscation u/s 130(1) of
the CGST Act, 2017, shall be duty bound under law to determine the
market price of the goods proposed to be confiscated.
5. Order of confiscation could be passed even if the confiscable goods
had left the country [M.G. Abrol v. M/s. Shantilal Chhotalal & Co. -
1966 SCR (1) 284]. However, from the decisions in the undernoted
cases [Chinku Exports v. CC., Calcutta, 1999 (112) E.L.T. 400 (Tribu-
nal), Prudential Pharmaceuticals Ltd. v. CC, Chennai, 2001 (136) E.L.T.
1057 (Tri.-Chennai), Shiwalaya Spinning & Weaving Mills (P) Ltd.,
2002 (146) E.L.T. 610], the position which emerges is that redemp-
tion fine cannot be imposed on goods which are not available for
confiscation.
6. For conveyance carrying goods that are liable to be confiscated u/s
130(1) of the CGST Act, 2017, the owner of the conveyance shall be
given an option to pay a fine equal to the tax payable on the goods
being transported thereon, in lieu of confiscation of the conveyance.
7. Redemption fine paid by owner of the goods or conveyance or any
person referred to in sub-section (1), shall be in addition to any tax,
penalty or other charges. Thus, such person shall be liable to pay the
following amounts in respect of such confiscated goods or convey-
ance :
• Redemption Fine as provided under sub-section (2).
• Any tax payable on such goods or conveyance.
• Any penalty payable in respect of such goods or conveyance.
• Any charges payable in respect of such goods or conveyance.
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[Continued from page A158]
It is hoped that the implementation of new provision must be done with
due care and responsibility. Considering the current economic scenario, neces-
sary verification and investigation is utmost important before taking any safe-
guard measures in the cross-border trade. It is also important to highlight that
imports under FTAs are also central to the overall economic growth of the do-
mestic industry. Government must look into the issues that in case of any com-
pliance burden arising out of “Rules of Origin” related provision, the importer’s
concern on the ease of doing business front should be taken care of. It is hoped
that a caring approach is exercised by the Government in implementing the
aforesaid provisions in such a challenging times.
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EXCISE LAW TIMES  1st June 2020  52