Jennex Granite Industries Vs Commissioner of Customs (CESTAT Chennai)
The appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, concerned the imposition of a penalty of ₹4,00,000 under Section 112(a) of the Customs Act, 1962, which had been affirmed by the Commissioner (Appeals-II), Chennai. The appellant, a 100% Export Oriented Unit (EOU), challenged the penalty arising from the import of rough granite blocks.
The factual background shows that the appellant had imported rough granite blocks but failed to file the required Bills of Entry under Section 46 of the Customs Act. As a result, the imported consignment remained uncleared from 10.09.2013. The custodian of the goods issued notices under Section 48 of the Customs Act on 05.11.2013 and again on 07.12.2013, calling upon the importer to clear the goods within the stipulated time. The appellant did not respond to these notices.
Subsequently, a Show Cause Notice dated 23.12.2014 was issued proposing confiscation of the goods under Section 111(d) of the Customs Act and imposition of penalty under Section 112(a). The basis for the notice was that rough granite blocks were a restricted item under the Foreign Trade Policy (FTP) 2009–2014 and required a specific licence or import authorisation, which the appellant had not produced.
