Steel Authority of India Limited Vs Commissioner (Appeals) CGST (CESTAT Kolkata)
Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Kolkata has reduced the penalty imposed on Steel Authority of India Limited (SAIL) for delayed submission of documents in provisional assessments. Initially, the adjudicating authority imposed a penalty of ₹45,000 under Regulation 5 of the Customs, Provisional Duty Assessment Regulations, 2011. However, on appeal, the Commissioner (Appeals) enhanced the penalty to ₹50,000 per bill of entry, amounting to ₹44 lakh. SAIL contested this increase, arguing that the delay was due to the complex nature of gathering necessary documents from multiple sources.
The Revenue department justified the penalty enhancement, citing repeated delays by SAIL in submitting required documentation. As per customs regulations, documents such as invoices, bills of lading, and certificates of origin must be submitted within one month. However, in multiple instances, SAIL filed documents after one or even two years. The department argued that the earlier penalty of ₹45,000 was lenient and that the Commissioner (Appeals) had appropriately applied the maximum permissible penalty under Regulation 5.
CESTAT acknowledged that while SAIL had significantly delayed document submissions, imposing the maximum penalty of ₹50,000 per bill of entry was excessively harsh. The tribunal reviewed past cases where penalties for similar violations were moderated. In previous decisions, CESTAT had ruled that a penalty of ₹2,500 per bill of entry was reasonable under similar circumstances. Referring to this precedent, the tribunal reduced SAIL’s total penalty from ₹44 lakh to ₹2.25 lakh.
