Extension of Import Restrictions by Dept amidst Suffering Detention and Demurrage Charges: CESTAT reduces Redemption Fine and Penalty to Rs. 25 Lakhs

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) reduced the redemption fine and penalty imposed on M/s Rahul Agro Industries to ₹25 lakhs each. The case involved the import of green and yellow peas during a period when import restrictions were in place. The restrictions, implemented through government notifications, turned previously unrestricted imports into a controlled category. The Rajasthan High Court temporarily stayed the enforcement of the restrictions, but the goods remained detained, causing significant detention and demurrage charges. The CESTAT’s decision to reduce the fine and penalty took into account the financial strain on the importer due to the prolonged detention of goods.