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of <h1>Tribunal reduces penalties, acknowledges efforts of appellant under Section 112(a)</h1> <h3>PATEL ENGINEERING LTD. Versus COMMR. OF CUS. (I), MUMBAI</h3> The Tribunal waived the redemption fine and reduced the penalty imposed under Section 112(a) to Rs. 25,000. The appellant had fulfilled the necessary ... Penalty and redemption fine Issues:Non-production of 'Relaxation' or 'No Objection Certificate' from DGFT for clearance of imported Capital Goods; Imposition of redemption fine, penalty, and demurrage losses.Analysis:The main issue in this case was the non-production of the required 'Relaxation' or 'No Objection Certificate' from DGFT for the clearance of imported Capital Goods, specifically used 'Off Highway Construction Equipment.' The adjudicating authority had imposed a redemption fine of Rs. 5,00,000 under Section 125, Rs. 75,000 under Section 111(d), and a penalty of Rs. 2,00,000 under Section 112(a) of the Customs Act, 1962. However, during the proceedings, the appellant's counsel informed that the necessary certificate had been obtained and submitted to the Department. It was also noted that a letter superseding the basis for initiating proceedings had been issued by the Department.Upon hearing both sides and examining the records, the Tribunal considered that the appellant had fulfilled the requirements as per the Foreign Trade Policy under the Foreign Trade (Development & Regulations) Act, 1992. Additionally, it was acknowledged that the appellant was incurring demurrage losses. Consequently, the Tribunal decided to waive the redemption fine and reduce the penalty under Section 112(a) to Rs. 25,000. The applications for stay and early hearing were also disposed of accordingly.This judgment highlights the importance of complying with the necessary certificates and requirements for the clearance of imported goods to avoid penalties and fines. It also underscores the Tribunal's consideration of the appellant's compliance efforts and the impact of demurrage losses in determining the final decision on penalties and fines.
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