Case Law Details
Bharat Tissues Pvt. Ltd. Vs C.C. (CESTAT Bangalore)
No Custom Penalty levied, if goods were permitted to be cleared by the officers after signing Bond
The issue under consideration is whether the penalty under Customs Act will be applicable in case where bond is submitted for any violation of EOU related rules?
CESTAT states that, there is merit in the argument of the appellants to the extent that the Revenue is free to demand and collect duty along with interest, in terms of the Bonds submitted by the appellants at the time of import in terms of Notification No. 52/03. They find that the Bond submitted in terms of the Notification binds the appellants to pay back the duty and interest in the event of any violation. CESTAT find that the said Notification does not provide for imposition of any penalty and therefore, they set aside the penalty imposed. CESTAT also find that the appellant’s submission vis-à-vis confiscation is also acceptable in terms of the Notification. The Notification is a self-contained Notification and action can be taken by Revenue under the terms of the Notification. The Notification also does not provide for confiscation and fine in lieu of confiscation. Moreover, as discussed above, Learned Commissioner finds that the appellants have imported the rejected goods even though the Serial No. 14 & 15 of Annexure-I to the Notification do not permit such imports. In such case, as submitted by the appellant, the fact that the respective Bills of Entry have been assessed by the proper officers at the time of import is also to be considered. In view of the same, penalty under Section 114A and other penal provisions cannot be invoked when the goods were permitted to be cleared by the officers. However, the Revenue will be free to recover duty along with interest in terms of the Notification.
FULL TEXT OF THE CESTAT JUDGEMENT
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