SAFT India Pvt. Ltd Vs Commissioner of Customs (CESTAT Chennai)
Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chennai Bench, has ruled that no redemption fine or penalty can be imposed once the confiscability of goods and original penalty imposition have been set aside by the Tribunal. This decision came as CESTAT dismissed Revenue’s Appeal No. C/40353/2022 in the case of SAFT India Pvt. Ltd. vs. Commissioner of Customs.
The Tribunal noted its prior Final Order No. 40283/2024, dated March 13, 2024, which had partly allowed SAFT India’s earlier appeal (No. 40347/2022). In that ruling, while the goods’ classification was upheld, the Tribunal specifically rejected their confiscability and set aside the penalty imposed. Based on this established judicial precedent, the CESTAT concluded that the original authority was correct in not levying a redemption fine. The Revenue’s appeal was thus found to lack merit and was dismissed, reinforcing that fines and penalties are contingent upon the goods being legally liable for confiscation.
FULL TEXT OF THE CESTAT CHENNAI ORDER
Heard Shri Sanjay Kakkar, ld. Deputy Commissioner for the Revenue on the miscellaneous petition for early hearing of appeal. We find that insofar as the Assessee’s Appeal No.40347/2022, arising out of the same impugned order is concerned, this Bench vide Final Order No.40283/2024 dated 13.03.2024 has partly allowed the appeal; the appeal insofar as classification is concerned, was rejected, while confiscability and imposition of penalty are concerned, the appeal of the assessee came to be allowed.
