Reduction in fine

2012 PTD 1962 Customs, Federal Excise and Sales Tax Appellate Tribunal Judicial Precedent

Ss. 2(b), (s), 156(1)(89), 157, 168, 181 & 194-AS. R.O. 499(1)/ 2009, dated 13-6-2009SmugglingConfiscation of smuggled goodsOption to pay fine in lieu of confiscationReduction in fineAlleged smuggled goods along with carrier/vehicle were seized under Ss.168 and 157 of Customs Act, 1969

Adjudicating Officer, on option of importer vide order-in-original released goods along with vehicle against payment of 20% redemption fine of its assessed value

Collector (Appeals) reduced said fine

Order of reduction of fine had been challenged by the department in appeal before the Appellate Tribunal contending that impugned order was against the law as Collector (Appeals) had exceeded the powers conferred on him by Customs Act, 1969

Validity

Under provisions of 5.181 of the Customs Act, 1969, Federal Board of Revenue was competent to issues order to specify the goods where option of fine in lieu of confiscation would not be given as per first Proviso of S.181

Second Proviso of S.181 of Customs Act, 1969 empowered the Board to fix the amount of fine which in lieu of confiscation would be imposed on any goods

Order issued by the Board under S.181 of Customs Act, 1969 was binding on the appropriate officers directing confiscation of goods

Goods were rightly released vide order-in­original against payment of 20% redemption fine of customs value of the impugned vehicle

Collector (Appeals), in circumstances, was not justified in modifying order-in-original

Impugned order was set aside.