CESTAT quashes Penalty u/ss 112 and 114AA of Customs Act on Import of Cold rolled Stainless Steel Coils on ground of Absence of Incriminating Evidence [Read Order]

The Bangalore bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the penalty imposed under sections 112 and 114AA of the Customs Act,1962 on the import of cold rolled stainless steel coils on the ground of the absence of incriminating evidence. 

Vivek Metals, the appellant assessee was a proprietary concern engaged in the trading of imported and indigenously procured stainless steel products and filed a bill of entry for the import of cold rolled stainless steel coils grade 430 of thickness 0.3mm /0.6mm /0.7mm x 1260mm width from Taiwan. 

The assessee appealed against the order passed by the Commissioner (Appeals) for confirming the demand of the anti-dumping duty and for imposing of penalty under sections 112 and 114AA of the Customs Act,1962, and for the confiscation of goods under section 111(m) of Customs Act. 

B. N. Gururaj, the counsel for the assessee contended that their business transactions were performed in the normal course of business and because he had knowledge of antidumping duty leviability, did not follow that the assessee intended to evade the anti-dumping duty. 

Also submitted that if the goods are not available for confiscation, they cannot be confiscated, and hence, a redemption fine cannot be imposed and the imposition of penalty against the assessee was not legally sustainable. 

Rajiv Kumar Agrawal, the counsel for the department relied on the decisions made by the lower authorities and contended that the imposition of penalty was as per the law and liable to be sustained. 

The Bench observed that in the case of Shiv Krupa Ispat Pvt.Ltd, the court held that when the goods are not available for confiscation, they cannot be confiscated, and hence, a redemption fine cannot be imposed the demand for all the past consignments was set aside, and therefore, the order to the extent of confiscation and imposition of the penalty also not sustainable. 

The two-member bench comprising D M Misra (Judicial) and Bhagya Devi (Technical) quashed the penalty imposed on the assessee. 

To Read the full text of the Order CLICK HERE

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