Tribunal Overturns Customs Penalties in Pharma Import Case; Compliance & Payment Post-Notification Considered, Appeal Allowed

The Tribunal set aside the order of confiscation, redemption fine, and penalties under the Customs Act, 1962, related to alleged evasion of Anti-Dumping Duty by an appellant engaged in pharmaceutical import and trading. The Tribunal found the appellant's payment post-notification, lack of ADD in assessment, and immediate compliance as evidence of inadvertent omission, not willful evasion. Relying on Section 28(2) of the Customs Act, 1962, which supports no penalty imposition if duty and interest are paid, the Tribunal deemed the confiscation, fine, and penalties unjustified and allowed the appeal with consequential relief.

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Issues:
Challenge against order of confiscation, redemption fine, and penalties under Customs Act, 1962 for alleged evasion of Anti-Dumping Duty.

Analysis:
The appellant, engaged in pharmaceutical import and trading, imported Ascorbic acid without paying Anti-Dumping Duty (ADD), leading to goods' confiscation, redemption fine, and penalties. Appellant argued lack of awareness about ADD levy and immediate payment upon notification through CHA. Department defended order, citing ADD notifications and alleging evasion. Tribunal examined records and found appellant's payment post-notification, lack of ADD in assessment, and immediate compliance as evidence of inadvertent omission, not willful evasion. Section 28(2) of Customs Act, 1962 supports no penalty imposition if duty and interest paid. Tribunal deemed confiscation, fine, and penalties unjustified, setting aside the impugned order and allowing the appeal with consequential relief.

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