Paramount Surgimed Limited Vs Commissioner of Customs (CESTAT Delhi)
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Delhi, delivered a significant judgment in the case of M/s Paramount Surgimed Limited Vs Commissioner of Customs, setting aside penalties totaling ₹1,75,000 imposed on the appellant for the late filing of quarterly returns related to the import of goods at a concessional rate of duty.
The Core Issue
The dispute centered on the appellant, an importer, failing to adhere strictly to the procedural requirement of filing quarterly returns under Rule 6(3) of the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017. Paramount Surgimed Ltd. was availing the benefit of Customs Exemption Notification No. 50/2017-Cus. (as amended) and was required to submit these returns to the jurisdictional Deputy/Assistant Commissioner of Customs by the tenth day of the following quarter.
The department alleged contravention of Rule 6(3) for seven different quarters, from July 2017 to March 2019, and accordingly, issued a Show Cause Notice proposing penal action under Section 158 of the Customs Act, 1962.
Holdings of Lower Authorities
The initial adjudicating authority issued an Order-in-Original, imposing a penalty of ₹25,000 for each of the seven quarters, resulting in a total penalty of ₹1,75,000 under Section 158 of the Customs Act. This order was subsequently upheld by the Commissioner (Appeals). The lower authorities based their decision on the appellant’s admitted failure to file the stipulated returns on time, noting that all delayed returns were submitted only after the issuance of the Show Cause Notice.
