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Judgment
These appeals are directed against the impugned order dated 15.1.2015 passed by the Commissioner (Appeals), Customs & Central Excise, Jaipur.
The appellants in these appeals are not contesting the duty liability, confirmed in the adjudication order. The grievance of the appellant is against
imposition of redemption fine and personal penalties on the appellants. According to the appellant, the show cause notice was not issued within six
months from the date of seizure of goods, and consequently as per the provisions of Section 110(a) of the Customs Act, 1962, the goods ought to have
been automatically released. Since the goods were in the custody of Department, there was no question of confiscation of the same and resultantly, no
redemption fine can be imposed.
Heard both sides and perused the records.
Section 12 of the Central Excise Act, 1944 empowers the Department to adopt the provisions of the Customs Act 1962, for the purpose of duties
leviable under Central Excise Act. Thus in exercise of the powers conferred, the Central Government has issued Notification No.68/63 dated 4.5.63,
by extending the provisions of Section 110 of Customs Act, 1962 for the matters concerning the Central Excise Statute. Sub-section (2) of Section 110
of the Custom Act mandates that where the goods are seized under Sub-section (1), the notice in respect thereof shall be issued within six months,
from the date of seizure and in the eventually, where no notice is issued within such stipulated time, the goods shall be returned to the person, from
whose possession the same were seized. Section 110 has application only to the cases involving seizure and release of the goods. In the present case,
since the issue relates to the seizure of excisable goods, the provisions of Section 110 of the Customs Act, 1962, in my opinion, is rightly applicable.
However, the proposals have been made in the show cause notice, for confiscation of goods under Rule 25 of the Central Excise Rules, 2002, which is
a self-contained rule. This rule provides for confiscation of goods and for imposition of penalty for contravention of the provisions under Central
Excise statute. These provisions can be invoked, irrespective of the fact whether the goods were seized under Section 110 of the Customs Act. In
present case, the show cause notice was issued under the Central Excise Act, 1944. Section 12 of the said Act is applicable only to those specific
sections of the Customs Act, 1962, which are notified under Notification No. 68/63 dated 04.05.1963. The SCN was issued, alleging contravention of
the provisions of Central Excise Act, 1944.Confiscation of the goods and provisional release thereof is in conformity with the Central Excise statute.
However, considering the overall facts and circumstances of the case, and in view of the fact that appellants had already discharged the duty
liability along with 25% penalty, I am of the view that ends of justice will be met, if redemption fine imposed on the appellant is reduced. Therefore,
redemption fine is reduced from Rs.5 lakhs to Rs.1 lakh, which shall be paid forthwith by the appellant. With regard to imposition personal penalties on
the employees, I am of the view that same can be also reduced. Thus the penalties imposed on Shri Suresh Jain and Shri Mahavir Jain are reduced to
Rs.15,000/- each.
The appeals are disposed of in above terms.