COMMISSIONER OF CUS. (PREVENTIVE) Vs. ESSAR OIL LTD.

JUDGEMENT

(1.) The Respondent herein had imported Crude Distillation Unit Column (CDU) as well as Vacuum Distillation Unit Column Vessels (VDU) for setting up oil refinery at Jamnagar of which the Respondent was made Custodian. The Respondent filed Bills of Entry. However, without paying the customs duty, the Respondent as a Custodian shifted the goods from jetty area to the project site which was about 20 kilometers away. When the place was inspected and the Revenue Authorities came to know about the aforesaid shifting, show cause notice was issued for confiscation, levy of duty and penalty etc. After hearing the Respondent, the Commissioner passed the order confiscating the goods and levying the redemption fine, imposing the import duty as well as levying the penalty on the Custodian as well as on the importer. EPCG benefit was also denied. The Respondent preferred appeal against the aforesaid order before the Tribunal. The Tribunal has confirmed the finding that there was violation of Sec. 45 of the Customs Act inasmuch as goods were shifted without payment of duty and without authorization of the proper officer. However, having regard to the circumstances under which the aforesaid steps were taken by the Respondent, the Tribunal has reduced the redemption fine and set aside the penalty. The operative part of the order read as under:

(2.) We have heard Learned Counsel for both the parties at length. As already pointed out, there is a clear violation of the provisions of Sec. 45 of the Customs Act. In such circumstances, when the confiscation was held to be valid, we are of the view that reducing the redemption fine from Rs. 1.2 crores to merely Rs. 1 lac was not proper. We have considered this aspect. According to us the interest of justice would be subserved in fixing the redemption fine to the extent of 50% of the fine imposed by the Commissioner. Other directions contained in the order of the Tribunal are maintained. Ordered accordingly.

(3.) The aforesaid redemption fine shall be paid within four weeks. In view of the above, the appeal is disposed of.