COMMISSIONER OF CUSTOMS (IMPORTS) Vs. ANAND MAHINDRA
LAWS(BOM)-2009-9-272
HIGH COURT OF BOMBAY
Decided on September 23,2009

COMMISSIONER OF CUSTOMS (IMPORTS) Appellant
VERSUS
Anand Mahindra Respondents

JUDGEMENT

- (1.)The Revenue is in appeal against the order dated 13-2-2008 [2008 (226) E.L.T. 371 (Tri. - Mumbai)]. The learned tribunal by that order upheld the order of confiscation for contravention of the provisions of Section 111(bh) and reduced the redemption fine from Rs. 25 lacs. To Rs. 5 lacs, keeping in view the fact that the vessel was for the personal use of the appellant before it. The learned Tribunal has opined that imposition of penalty is not mandatory and it depends upon the facts and circumstances of each case and accordingly set aside the order of penalty in the sum of Rs. 5 lacs.
(2.)We admit the appeal on the following question :
"(a) Whether in the facts and circumstances of the case the Hon'ble CESTAT is right in partly setting aside the; Order-in-Original dated 28-8-2006 and reducing the redemption fine from Rs. 25,00,000/- to Rs. 5,00,000/- and also setting aside the personal penalty imposed upon the importer for various offences committed U/s. 111(d), (f) and (m) and U/s. 112(a) of the Customs Act, 1962 -

(3.)A few facts may be noted. The vessel was already within the Indian territorial waters. The respondents herein purchased the same. The Tribunal also noted that if the respondent had applied for licnece, the D.G.F.T. would have granted the same. Secondly the yacht was for personal use of Respondent herein and in these circumstances, the tribunal was pleased to reduce the amount of fine. Section 125 uses expression as such fine as the said officer thinks fit. It is no doubt true that the A.O. had considered the material before him and imposed the fine in the sum of Rs. 25 lacs. The tribunal considering the factors relevant for consideration in imposition of fine arrived at the conclusion that the find imposed was harsh and accordingly reduced the same. In our opinion, it cannot be said that the said finding and consequent reduction of redemption fine by the tribunal is without jurisdiction or discloses non application of mind. In our opinion, therefore, we find no reason to interfere with the order passed by the Tribunal in so far as redemption fine is concerned.


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.