CC Vs. RAMAN SOOD LTD

JUDGEMENT

(1.) SHRI R.D. Negi, Ld. DR submits that in all these six appeals only one issue is for determination and that is the issue of demand of duty on goods confiscated but allowed to be redeemed on payment of redemption fine without collecting the duty.

(2.) THE facts of the case in brief are that the respondents imported these cars under Carnet -de -passage scheme wherein the imported goods are required to be exported within a period of six months or within the extended period permitted by the competent authority. Information was received in the office of the Director Revenue and Intelligence that certain cars imported under Carnet -de -passage Scheme have over -stayed and have not been exported. Accordingly, investigations were conducted, cars were seized and matter was adjudicated. The adjudicating authority allowed the cars to be redeemed on payment of fine and penalty. The Department has come up in appeal against these findings on the ground that in terms of Section 125 of the Customs Act, goods can be redeemed only not on payment of fine and penalty but also on payment of duty prevalent at the time. 2. Shri R.D. Negi, Ld. DR submits that payment of duty is the requirement of law and goods cannot be redeemed only on payment of fine and penalty at the time of redemption fine of the goods. Collection of duty is an essential requirement of Section 125. He submits that since duty has not been collected and since the token redemption fine has been imposed by the adjudicating authority, the order was wrong and illegal. He, therefore, prays that the applicant may be permitted to collect the duty and that the quantum of redemption fine may be enhanced in view of the fact that the cars have been valued at Rs. 12 lakhs each and the margin of profit in Mercedez cars in India which needs to be wiped of by imposition of a higher redemption fine is a very high and thus the amount of Rs. 50,000/ - as redemption fine is unduly low. He, therefore, prays that the appeal of the Revenue may be allowed.

(3.) NONE appeared for the respondents.