Case Law Details
Citibank N.A. Vs Commissioner of Customs (ACC & Import) (CESTAT Mumbai)
CESTAT Mumbai held that the appellant being a subsequent purchaser of the goods from the M/s Philips India who had allegedly purchased the imported the goods hence confirmation of penalty under Section 112 of the Customs Act is unsustainable in law.
Facts-
Appellant Citibank is engaged in carrying on activities of banking services at its various branches located in India and it had purchased 12 numbers of ATMs and 6 ATMS Controllers in July, 1998 from M/s. Philips India.
On 11.09.1992 show-cause notice was issued by the then Collector of Customs, Air Cargo Complex, Sahar, Mumbai on the allegation that those ATMs and ATMs Controllers were supplied by M/s Philips India to the Appellant after the same being imported by a company’s/firm of Mr. Jiten P. Mody by mis-declaration of description and value of goods in violation of Import Policy and without Import Licence. The notice also proposed for confiscation of machines under Section 111(d) and (m) of the Customs Act, 1962. Matter was adjudicated upon and penalty of Rs.1,50,00,000/- was imposed on the Appellant Citibank. Penalty of Rs.40,00,000/- each for two consignments were also imposed on Appellant Mr. Mafatlal R. Mehta, the Customs broker without any show-cause notices being issued to him. Legality of the said order is assailed in this appeal.
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