The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the penalty for confiscation of iron or non-alloy steel on the ground of non-violation of advance license under Customs Notification.
Namco Industries Pvt. Ltd, the appellant assessee engaged in the manufacture of flat rolled products of iron or non-alloy steel falling under Chapter 72 of the Schedule to the Central Excise Tariff Act,1985 duly registered with jurisdictional GST authorities and obtained an Advance Authorization/license for import of goods at the concession rate of duty.
The assessee appealed against the order passed by the Commissioner of Customs (Export) for confirming the adjudged demands, confiscation of the goods, and imposition of redemption fine and penalty.
Vishal Agarwal and Kartik Dedhia, the counsels for the assessee contended that there was no violation of the conditions of Advance License under Customs notification and though the assessee had obtained the necessary permission from the Directorate General of Foreign Trade (DGFT) and had also applied for discharge of an export obligation, as they had also fulfilled the proportionate export obligation and they had also obtained the same from DGFT.
Sydney D’Silva, the counsel for the department contended that since the assessee did not fulfill the conditions of the customs notification in respect of the export obligation, the demand raised by the revenue was legally sustainable.
The Bench observed that the assessee had produced the Advance Authorisation at the time of import of goods through the notified sea port Mumbai and executed the Bond along with necessary undertaking before the Customs authorities in respect of Advance License and there was no case of sale or transfer of advance authorization in this case. Thus, the assessee had fulfilled all the relevant conditions.
The two-member bench comprising Mohanty (Judicial) and Parthiban (Technical) quashed the penalty imposed for the confiscation of the imported goods against the assessee.
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