2004 (2) TMI 477 - AT - Customs

Appellate Tribunal rules penalties not applicable under Section 117 for late Bill of Entry filing

The Appellate Tribunal CESTAT, Mumbai upheld the orders-in-appeal favoring the respondents in a case involving penalties imposed under Section 117 of the ... Penalty Issues:1. Appeal against order-in-appeal allowing respondents' appeal.2. Interpretation of provisions of Section 48 of the Customs Act, 1962.3. Imposition of penalty under Section 117 for failure to file Bill of Entry within 30 days.Analysis:The judgment by the Appellate Tribunal CESTAT, Mumbai involved an appeal by the Revenue against an order-in-appeal that had favored the respondents, setting aside an order-in-original passed by the Assistant Commissioner. The original order imposed a penalty of Rs. 7,000 on the respondents for failing to file a Bill of Entry for home consumption within 30 days, under Section 117 of the Customs Act, 1962. The adjudication was ex parte, leading to the dispute reaching the Commissioner (Appeals) and subsequently the Tribunal.Upon hearing both sides, the Tribunal delved into the interpretation of Section 48 of the Customs Act, which was central to the issue at hand. The Revenue contended that the failure to file a Bill of Entry within 30 days amounted to a violation of Section 48, necessitating penalties under Section 117. However, the Tribunal disagreed with this interpretation. It noted that Section 48 primarily deals with the custodian's right to dispose of goods in case of non-compliance with filing requirements, without explicitly outlining penal consequences for such non-compliance.Consequently, the Tribunal upheld the orders-in-appeal and rejected the Revenue's appeal. The judgment clarified that while Section 48 provides for certain actions in case of non-filing of a Bill of Entry within the stipulated time, it does not automatically trigger penalties under Section 117. This nuanced interpretation of the statutory provisions led to the dismissal of the Revenue's appeal and the preservation of the order-in-appeal favoring the respondents.