The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai set aside redemption fine and penalty imposed after reduction, on confirmation of confiscation, albeit after reduction in appellate proceedings attendant upon confirmation of confiscation ordered under section 111(o) of Customs Act, 1962.
The appeal was filed by Apex International, the appellant against the order of the Commissioner of Income Tax. The Counsel for the appellant, submitted that the dispute revolves around duty of Rs 10,38,685/- having been foregone on imports effected against bond executed on 5th September 2013 for making good the said amount with interest for breach of notification no. 96/2009-Cus dated 11th September 2009, commencing on 12th September 2013.
It was further pointed out that the period of eighteen months for full fillment of obligation originally stood extended to 24 months in accordance with amendment sheet dated 11th March 2015, which, admittedly, the appellant was unable to comply with leading to show cause notice dated 24th November 2016 requiring deposit of duty foregone, along with interest thereon, under the authority of the applicable notification besides proposing confiscation of the imported goods under section 111(o) of Customs Act, 1962 as laid down in bond prescribed in section 143 of Customs Act, 1962.
According to the Counsel for the appellant, the duty along with interest thereon, totalling Rs 15,86,879/, had been deposited on 11th September 2017 and closure accorded by the licensing authority on 21st November 2017. It was submitted by her that these facts, though brought to the notice of the first appellate authority, was not appreciated sufficiently as the redemption fine and penalty were merely reduced in the impugned order instead of being set aside.
A Singe Bench consisting of CJ Mathew, Technical Member held that “It would appear that the sole issue for determination is the scope for invoking the detriment of confiscation under section 111(o) of Customs Act, 1962 with attendant penalty under section 112 of Customs Act, 1962. In effect, the decisions of the Tribunal in re Global Boards Ltd and re Maruti Udyog Ltd, cited by the Learned Counsel, pertaining to law on invoking of section 111(o) of Customs Act, 1962 in circumstances of the imports having been regularised, must be followed. “
Shamita Patel, appeared for the appellant and S B Hatangadi, Assistant Commissioner (AR) appeared for the respondent.
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