Commissioner of Customs (Port) Vs Shalimar Wires Industries Limited (CESTAT Kolkata)
The case concerns the appeals filed by the Revenue against the Order-in-Appeal No. KOL/CUS/PORT/AKR/409-412/2022 dated 10.08.2022, in which the Commissioner of Customs (Appeals), Kolkata, set aside the late fine imposed on M/s. Shalimar Wires Industries Limited (the respondent). The respondent is engaged in the import of Polyester Monofilament Yarn and Polyamide (Nylon) Monofilament Yarn and had filed four advance Bills of Entry (BoEs) from M/s. Shakespeare Monofilament (UK) Ltd., dated 01.12.2021.
Due to the COVID-19 pandemic and associated financial constraints, the respondent could not monitor their industrial activities or pay the customs duty on time. Upon regularizing their business and arranging funds, the respondent instructed their Customs House Agent (CHA) to pay the duty. The CHA discovered that the advance BoEs were not available in the ICEGATE system. On consulting ICEGATE authorities, they were advised to re-assess and file fresh BoEs, which the respondent did on 19.01.2022. These new BoEs were automatically assessed with late fines of Rs.4,65,000 per case.
The respondent requested the waiver of late fines, citing the Supreme Court’s order in RE: Cognizance for Extension of Limitation, which recognized the period from 15.03.2020 to 28.02.2022 as exempt for calculating limitation due to the pandemic. They also highlighted that the assessing officer had not issued a Speaking Order under Section 17(5) of the Customs Act, 1962. The Deputy Commissioner of Customs rejected the waiver request but limited the fine to the duty amount.
