2011 (9) TMI 301 - AT - Customs

Tribunal reduces Customs Act penalty to Rs.5000, citing appellant's modest income. Appeal rejected.

The Tribunal reduced the penalty imposed on the appellant under Section 114 of the Customs Act, 1962, from Rs.30,000 to Rs.5000 considering the ... penalty in terms of the provisions of Section 114 of the Customs Act, 1962 - appellant is an employee of CHA and G-Card holder - penalty stands imposed on the appellant on the ground of his being negligence towards his work - appellant is not disputing the above finding but prays for reduction of penalty - Decided that penalty reduced to Rs.5000/ - appeal is otherwise rejected Issues:1. Imposition of penalty under Section 114 of the Customs Act, 1962 on the appellant.2. Request for reduction of penalty amount due to the appellant's financial condition.Analysis:1. The main issue in the present appeal was the imposition of a penalty of Rs.30,000 on the appellant under Section 114 of the Customs Act, 1962. The appellant, an employee of a Customs House Agent (CHA) and a G-Card holder, was found negligent in his work, leading to the penalty. The Commissioner (Appeals) noted that there was no evidence linking the appellant to the sanctioning of undue drawback to the exporter, and it was not proven that the appellant had individually benefited from any misdeeds. The appellant, while not disputing the negligence finding, argued that the penalty was excessive given his modest salary of around Rs.8,500 per month. The Tribunal considered the appellant's submission and decided to reduce the penalty to Rs.5000, taking into account the appellant's financial situation.2. The appellant's representative acknowledged the imposition of the penalty but sought a reduction in the penalty amount based on the appellant's financial circumstances. The Tribunal, after hearing both sides, found that the appellant had not challenged the penalty under Section 114 of the Customs Act, 1962. The appellant's plea for a reduced penalty was considered in light of the allegations and findings against him, as well as his financial condition. Consequently, the Tribunal decided to lower the penalty to Rs.5000, taking into consideration the appellant's financial constraints. Despite the reduction in the penalty amount, the appeal was rejected in all other aspects. The stay petition and appeal were disposed of with the modified penalty amount of Rs.5000.This comprehensive analysis covers the issues raised in the judgment, detailing the reasons for the penalty imposition, the appellant's arguments, and the Tribunal's decision to reduce the penalty amount based on the appellant's financial situation.