K.N. THIYAGARAJAN Vs. CC

JUDGEMENT

(1.) THIS application filed by the Commissioner points out an apparent mistake in Final Order No. 53/2007 dt. 12.1.2007 which was passed by this Bench in appeal No. C/163/2000. The appeal filed by the respondent in the present application was against absolute confiscation of 40 gold bars of foreign origin weighing 4665.6 grams valued at Rs. 20.6 lakhs, confiscation of car bearing Registration No. TN -72A/3004 (with redemption fine of Rs. 1 lakh) and imposition of penalty of Rs. 5 lakhs. This Bench allowed the appeal by way of remand directing the Commissioner to give the appellant an opportunity to redeem the gold bars by paying a reasonable amount of fine under Section 125 of the Customs Act vide Final Order No. 5 3/07 ibid. Ld. Commissioner was directed to determine the amount of fine to be paid by the party, after hearing him. In respect of the car, which belonged to the appellant, we reduced the quantum of redemption fine to Rs. 20,000/ -. Further, we reduced the penalty on the appellant to Rs. 3 lakhs, which was directed to be paid by him along with fines at the time of redemption of the goods.

(2.) IN the present application, the Commissioner states that 39 out of 40 gold bars were disposed of by the department by action -sale in June 2000 and an amount of Rs. 20,16,734/ - was realized after payment of sales tax. It is also stated that the car was disposed of, likewise, in December 2001, for a price of Rs. 62,500/ -. The application has also referred to our Stay Order No. 341/2000 dt. 11.5.2000, wherein the sale of gold bars by the department had been noted. After considering these averments in the application and hearing both sides, we are satisfied that we had passed the above final order on the erroneous premise that the gold bars and car were still in departmental custody. The fact that 39 out of the 40 gold bars had already been disposed of by the department was overlooked by the Bench. The fact that the car had been disposed of by the department in Dec'2001 was not brought to the notice of the Bench by either side. The present position is that the department has already disposed of the goods and retains the sale proceeds.

(3.) THE appeal was filed in Feb'2000. The confiscated items were disposed of by the department during the pendency of the appeal. Though our Final Order No. 53/2007 dt. 12.1.2007 holds good as on the date of filing of the appeal, we have got to modify it by taking into account the subsequent developments which have a bearing on the results of the appeal. Accordingly, we substitute the following text for the present text of Final Order No. 53/2007 dt. 12.1.2007: