SAINUL ABIDEEN NEELAM Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) 1. The applicant had imported a car, clearance of which was allowed under Bill of Entry dated 21.01.1998 on the basis of the importer's declaration and the documents filed with the Bill of Entry. The Department instituted an investigation into this import and, on the basis of its results, issued a show -cause notice to the applicant proposing to confiscate the car under Section 111 of the Customs Act and to impose penalty on the importer under Section 112 of the Act. These proposals were contested. In adjudication of the dispute, the Additional Commissioner of Customs held the vehicle liable to confiscation and imposed a redemption fine of Rs. 4.5 lakhs under Section 125 of the Act. He also imposed a penalty of Rs. 60,000/ - on the applicant under Section 112 of the Act. In appeal, the Commissioner of Customs (Appeals) reduced the quantum of penalty to Rs. 25,000/ - and, with this modification, sustained the order of the original authority. Still aggrieved, the applicant preferred Appeal No. C/302/2003 with this Tribunal. Final order No. 915/2004 dated 12.10.2004 was passed by the Tribunal, setting aside the impugned order and allowing the appeal with consequential relief as per law.

(2.) THE applicant had obtained release of the car (which had been seized by the investigators of the Department) on production of a bank guarantee for a sum of Rs. 4,92,855/ - (being the assessable value of the vehicle) on the strength of an order of the Hon'ble High Court. The Department encashed the bank guarantee on 15.07.2002, i.e., prior to institution of the captioned appeal. This fact, evidenced by the banker's certificate on record, is not in dispute.

(3.) AFTER hearing both sides and considering their submissions, I find that refund of any amount realized from the applicant by the Department towards redemption fine and penalty, both of which were set aside by this Tribunal in the above final order, is only consequential to the said order. Accordingly, there will be a direction to the respondent to refund a total amount of Rs. 4,75,000/ - (Rupees Four lakhs seventy -five thousands only) [Redemption fine of Rs. 4,50,000 + Penalty of Rs. 25,000/ -] out of the amount realized by way of encashment of bank guarantee, to the applicant within a period of 4 weeks from the date of receipt of a certified copy of this order.