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CA Final · Indirect Tax Laws · Foreign Trade Policy

Mehta Overseas, in an attempted export, is found to have made a false declaration. Goods are seized, and the Adjudicating Authority orders confiscation under Section 11(8) of the FT(D&R) Act, 1992. Mehta seeks release of the goods. Which statement is correct?

Confiscated goods may be released by the Adjudicating Authority, in the prescribed manner and subject to conditions, on payment of redemption charges equivalent to the market value of the goods or conveyance. The five-times-value figure relates to penalty, not redemption.

  1. AConfiscated goods cannot be released in any case
  2. BGoods may be released on payment of redemption charges equivalent to the market value of the goodsCorrect
  3. CGoods may be released on payment of redemption charges equal to five times the value of goods
  4. DGoods may be released only on payment of Rs 10,000

Explanation

Section 11(9) permits release of confiscated goods or conveyance, in the prescribed manner and subject to conditions, on payment of redemption charges equivalent to the market value of the goods or conveyance. Five times value is the penalty ceiling, not the redemption charge, and Rs 10,000 is only the minimum penalty.

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