Page 227 - ELT_15th August 2020_Vol 373_Part 4

2020 ] COMMISSIONER OF CUSTOMS (ICD, TKD), NEW DELHI v. ORIENTAL TRIMEX LTD. 561

“5. The goods imported are “Rough Marble Blocks” which require an im-
port 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 im-
port 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 penalty imposed are
considered reasonable, keeping in view the facts and circumstances of the
present case.
6. It is noted that the imported goods have already been disposed of by
Customs Authorities since the importer has failed to clear the same within a
reasonable period of time. Since, the goods are no longer available, the
same cannot also be redeemed by the appellant-importer. Consequently,
there is no question of payment of redemption fine as well as Customs du-
ties. However, the importer will be entitled to receive the part of sale pro-
ceed received by the Customs at the time of auction of imported goods,
subject to the Rules and regulation in this regard. The same may be claimed
from the Customs authority. The penalty imposed to the extent of
Rs. 1,50,000/- may be deducted out of the sale proceeds”.
6. On being asked from the revenue whether the department has chal-
lenged the above said order in the case of the respondents, Learned DR has de-
posed that the order was not challenged due to low monetary effect as per Reve-
nue Policy.
7. Thus after carefully examining the rival arguments, though we are of
the considered view that once confiscation of the goods is held to be valid in any
proceedings, the property in the goods is vested in the Government and the sale
proceeds being the total consideration of such property, as a natural corollary
such sale proceeds will represent the confiscated goods. Once the confiscated
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 releas-
ing 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 contradict-
ing 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 pro-
ceeds, if the confiscated goods are sold/disposed of by auction during the pen-
dency of appeal”.
8. The miscellaneous applications are disposed off in above terms and
the main appeal is referred to the Larger Bench for consideration.
(Order pronounced in open Court on 13-3-2020)

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EXCISE LAW TIMES  15th August 2020  227