Right of Redemption available as Imported Areca Nuts are not Prohibited Goods: CESTAT confirms Reduction of Penalty [Read Order]

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), confirmed the reduction of penalty on the ground that the right of redemption is available as imported areca nuts are not prohibited goods.

The Revenue filed the appeal to assail the order in appeal passed by the Commissioner (Appeals) wherein he allowed the appeal of the importer ( M/s Salasar Impex) and modified the order in original passed by the Additional Commissioner.

The officers of the Customs gathered information that five containers were lying uncleared at ICD Tughlakabad for a long time and no bill of entry was filed and the goods in the containers could have been mis-declared in terms of quantity and value.

As per notification no. 20/2015-20 issued by the Ministry of Commerce under the Foreign Trade (Development and Regulation) Act, 1992, import of areca nuts is free if the CIF value is Rs. 251 per kg or more and it is prohibited if the CIF value is less than Rs. 251/- per kg. The declared CIF value in the Bill of Entry was Rs. 251/- per kg and if this value is considered, the import of the areca nuts is free.

The respondent importer had not, initially filed the Bill of Entry and therefore, an alert was placed in the Customs EDI system and thereafter the respondent filed the Bill of Entry the next date. The reason for delay in filing in the Bill of Entry was, according to the respondent, the death of the person who had initially placed the order.

According to the Revenue, the respondent filed the Bill of Entry knowing that the alert was placed in the system. Commissioner (Appeals) held in the impugned order that to say that the respondent filed the Bill of Entry because of the alert amounts to saying that the confidentiality of the alert placed by the department is not maintained.

The Tribunal of P. V. Subba Rao, Member (Technical) and Binu Tamta, Member (Judicial) observed that “As far as the areca nuts are concerned, although their confiscation was not challenged before us, in view of the assertion of the Revenue that they were prohibited goods (and hence should not have been allowed to be redeemed on payment of fine), we have examined and held that they were not prohibited goods.”

“There is nothing on record to show that any duty was sought to be evaded by the appellant on the areca nuts. Therefore, Section 112(ii) of the Customs Act does not appear to apply” the Tribunal concluded.

To Read the full text of the Order CLICK HERE

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