Supreme Court of India

M/S. WESTON COMPONENTS LTD.versusCOMMISSIONER OF CUSTOMS, NEW DELHI

Citation: 2000 INSC 3
Decided: 4 January 2000
Disposal: Dismissed
Bench: B N KIRPALS RAJENDRA BABU

Holding

The release of goods on a bond does not deprive the customs authority of its power to levy a redemption fine when subsequent investigation reveals import irregularities.

Summary

In the civil appeal filed by M/s. Weston Components Ltd. against the Commissioner of Customs, New Delhi, the appellant challenged the imposition of a redemption fine after its imported goods had been released on the execution of a bond. The goods were released to the appellant following an application and bond execution, but later the customs authority discovered that the import was invalid. The appellant argued that because the goods were no longer in the custody of the customs authority, the authority could not levy a redemption fine. The court examined the statutory provisions of the Customs Act, 1962 and held that the mere release of goods on a bond does not extinguish the customs authority's power to impose a redemption fine when irregularities are later uncovered. Consequently, the appeal was dismissed, upholding the fine.

Issues considered

Whether the customs authority retains the power to levy a redemption fine after goods have been released on a bond and later found to be imported invalidly.

Legislation cited

Customs Act, 1962

Subjects

customsredemption finebondrelease of goodsimport validitycustoms authority powers

Judgment

A                      M/S. WESTON COMPONENTS LTD.                                  ..
                                         v.
                 COMMISSIONER OF CUSTOMS, NEW DELHI

                                  JANUARY 4, 2000

B                (B.N. KIRPAL AND S. RAJENDRA BABU, JJ.j


            Customs Act, 1962 :

        Customs-Redemption fine---Goods in custody of custom
C authority-Goods released to party on execution of bond-Subsequently it was
  found import was not valid-Held mere release of goods would not take awiry ..
  power of the authorities to levy redemption fine.

            CIVIL APPELLATE JURISDICTION : Civil Appeal No. 7144 of
    1999.
D
         From the Judgment and Order dated 20.8.99 of the Central Excise
    Gold (Control) Appellate Tribunal, Delhi in A. No. C/44/98A in P.O. No.
    1160 of 1999-A.

E           L.P. Asthana, C.N. Sreekumar and G. Prakash for the Appellant.

            The following Order of the Court was delivered :

           It is contended by the learned counsel for the appellant that redemp-
    tion fine could not be imposed because the goods were no loger in the
F   custody of the respondent-authority. It is an admitted fact that the goods
    were released to the appellant Ou an application made by it and on the
    appellant executing a bond. Under these circumstance& if substquently it
    is found that the import was not valid or that there was any other ir-
    regularity which would entitle the customs authorities to confiscate the said
G   goods, then the mere fact that the goods were released on the bond being
    executed would not take away the power of the customs authorities to levy
    redemption fine.

            The appeal is dismissed.

H T.N.A.                                                       Appeal dismissed.
                                         26

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