COMMISSIONER OF CUSTOMS Vs. KIRAN JEWELS

JUDGEMENT

(1.) HEARD both the sides and perused the records.

(2.) THE Commissioner has held that 473.428 carats of diamonds valued at Rs 30,12,665/ -, which were not accounted for and physically not available for confiscation are also liable to confiscation under Section 111(o) of the Customs Act, 1962 but has refrained from imposing any redemption fine, as the goods are not physically available for confiscation. However, he -kept this in mind while determining the penalty on the respondents and accordingly imposed Rs. Five lakhs as penalty on them. However, the Revenue is of the opinion that the Order of the Commissioner is not correct in the light of the legal position that the non availability of the goods, which were cleared earlier under a bond, will not take away the powers of the customs authorities to impose redemption fine, if any irregularity is noticed later on. The Revenue has also observed that in the case of Venus Enterprises v. Commissioner of Customs, Chennai reported in , it has been held by the Tribunal that "We cannot accept the contention of the appellants that no fine can be imposed in respect of goods which are already cleared. Once the goods are held liable for confiscation, fine can be imposed even if the goods are not available." According to the Revenue, the said decision of the CESTAT has been upheld by the Hon'ble High Court. Madras reported in (Mad) and further confirmed by the Hon'ble Supreme Court in the case of Venus Enterprises v. Commissioner reported in 2007 (209) ELT A 61 (SC). Hence, the Revenue felt that the view held by the Commissioner regarding non imposition of the redemption fine under Section 125 of the Customs Act, 1962 is erroneous, and accordingly prayed for remanding the case back to the Commissioner on the limited point of imposition of redemption fine.

(3.) IN the light of the above discussions, I hold that the impugned order passed by the Commissioner is legal and proper and does not warrant any review on the issue raised by the Revenue.