-= : 1 : =-

IN THE HIGH COURT OF JUDICATURE AT BOBBY

IN THE HIGH COURT OF JUDICATURE AT BOBBY

IN THE HIGH COURT OF JUDICATURE AT BOBBY

ORDINARY

ORDINARY

ORDINARY ORIGINAL CIVIL JURISDICTION

ORIGINAL CIVIL JURISDICTION

ORIGINAL CIVIL JURISDICTION

CUSTOMS APPEAL NO.22 OF 2004

CUSTOMS APPEAL NO.22 OF 2004

CUSTOMS APPEAL NO.22 OF 2004

Commissioner of Customs (Import)

Air Cargo Complex, Sahar,

Andheri (E), Mumbai - 400 038. ..Appellant.

V/s.

M/s.Wockhardt Hospital & Heart

Institute, Shariff Chambers,

14, Cinningham Road,

Bangalore - 560 052. ..Respondent.

Mr.S.S.Pakale with Mr.R.C.Master i/b. Dr.T.C. Kaushik

for the appellant.

Mr.E.P.Bharucha, senior counsel with Mr.M.P.Baxi & Mr.

Gaurav Agarwal i/b. M/s.Harish Joshi & Co. for the

respondent.

AND

AND

AND

CUSTOMS APPEAL NO.17 OF 2005

CUSTOMS APPEAL NO.17 OF 2005

CUSTOMS APPEAL NO.17 OF 2005

Commissioner of Customs (Import)

Air Cargo Complex, Sahar,

Andheri (E), Mumbai - 400 099. ..Appellant.

V/s.

M/s.Grant Medical Foundation,

Ruby Hill Clinic, 40 Sasson Road,

P.O. Box No.70, Pune - 411 001. ..Respondent.

Mr.S.S.Pakale with Mr.R.C.Master i/b. Dr.T.C. Kaushik

for the appellant.

Mr.V.Shreedharan with Mr.Prakash Shah & Mr.Bharat

Raichandani i/b. M/s. PDS Legal for the respondent.

CORAM :

CORAM :

CORAM : R.M.LODHA AND

R.M.LODHA AND

R.M.LODHA AND

J.P.DEVADHAR, JJ.

J.P.DEVADHAR, JJ.

J.P.DEVADHAR, JJ.

-= : 2 : =-

DATED : 28TH APRIL, 2006.

DATED : 28TH APRIL, 2006.

DATED : 28TH APRIL, 2006.

ORAL JUDGMENT (PER J.P.DEVADHAR, J.)

ORAL JUDGMENT (PER J.P.DEVADHAR, J.)

ORAL JUDGMENT (PER J.P.DEVADHAR, J.)

1. These two appeals are filed by the revenue

under Section 130 of the Customs Act, 1962. Since the

issue involved in these appeals are common, both these

appeals are heard together and disposed of by this

common Judgment.

2. These appeals are filed against the orders

passed by the Customs, Excise & Service Tax Appellate

Tribunal, West Zonal Branch at Mumbai (‘the Tribunal’

for short) on 13/2/04 and 13/8/04 respectively. The

question before the Tribunal was, where the imported

goods cleared without payment of duty under a

conditional exemption notification are confiscated with

an option to pay fine in lieu of confiscation and if

the option is not exercised by the owner, whether the

revenue is entitled to recover customs duty payable on

such goods ? The Tribunal held that on confiscation,

the goods vest in the government and the liability to

pay duty under section 125(2) of the Customs Act, 1962

would arise only if the owner opts to redeem the goods

by paying the redemption fine. As the owners in these

two cases have not opted to redeem the goods, the

Tribunal held that the customs du