The Bangalore bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the penalty imposed for revocation of permission granted for operating as ship chandlers on the ground of non-violation of section 89 of the Customs Act,1962.
P. J. Johnson & Sons, the appellant assessee was permitted to carry out regular Ship Chandler’s work at Cochin port and the assessee appealed against the order passed by the Commissioner of Customs for imposing a penalty for revocation of permission granted for operating as Ship Chandler.
M. Balagopal, the counsel for the assessee contended that the Proper Officer i.e., the customs authorities has to determine taking into consideration the size of the vessel or aircraft the number of passengers and crew, and the length of the voyage on which the vessel or aircraft, have to determine the quantity that needs to be supplied as stores on to the vessel. Hence, it was the duty of the concerned authorities to verify these facts.
Further submitted that the assessee does not violate the provision of section 89 of the Customs Act.
P. Saravana Perumal, the counsel for the revenue department relied on the decisions made by the lower authorities and contended that since the case was prohibited, the question of allowing these goods for export was not correct and hence, the authorities were right in revocation of the permission and imposing penalty.
The Bench observed that the assessee had followed all the procedures and with necessary permissions had loaded the said goods onto the vessel.
The two-member bench comprising P. A Augustian (Judicial) and R.Bhagya Devu (Technical) quashed the penalty imposed for revocation of permission granted for operating as ship chandlers while allowing the appeal filed by the assessee.
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