2013 (9) TMI 220 - AT - Customs

Customs case affirms duty payment, penalties, jurisdiction dispute resolved

Sardarmal Kothari, KI (International Ltd.) and others Versus The Commissioner of Central Excise Bangalore

The case involved the denial of concessions under specific customs notifications, confirmation of differential duty and interest payment, confiscation of ... Jurisdiction of the tribunal – Assesse filed application for transfer of the appeals to the Chennai bench - Held that:- The Chennai bench of the Tribunal had jurisdiction to entertain the appeals inasmuch as the cause of action arose - the show-cause notice was issued by the ADG, DRI, Chennai and the order was passed by the Commissioner of Central Excise (Adjudication), Bangalore in his capacity as the Commissioner of Customs (Export), Chennai in terms of Notification No.106/2004 – matter was placed before the President for decision – Decided in favor of assesse. Issues:1. Denial of concession availed under specific notifications.2. Confirmation of differential duty and interest payment.3. Confiscation of diverted goods.4. Imposition of penalties on various individuals and entities.5. Jurisdiction of the appellate tribunal.Analysis:1. The Commissioner's order denied the benefit of concessions under Notification Nos. 16/2000-Cus and 17/2001-Cus, confirming a differential duty of Rs. 2,12,98,655 along with interest under Section 28AB of the Customs Act, 1962. Additionally, 9949.828 MTs of melting scrap diverted to the local market were held liable for confiscation under Section 111(0) of the Customs Act for contravention of said notifications.2. Penalties were imposed on various parties associated with SDV Steels Ltd., including the Managing Director and Executive Director, under Section 112 (a) of the Customs Act. The order also directed the payment of penalties on other entities and individuals involved in the case, with varying amounts and sections cited.3. The jurisdictional issue arose regarding the venue for hearing the appeals. The Commissioner's order was passed by the Commissioner of Central Excise (Adjudication), Bangalore, designated as Commissioner of Customs (Export), Chennai. The Department sought to transfer the appeals to the Chennai bench, emphasizing the need for a unified hearing due to interconnected issues.4. The Tribunal, after considering submissions, ruled that only the Chennai bench had jurisdiction due to the cause of action and relevant authorities being based in Chennai. The matter was referred to the Hon'ble President for a final decision on the appropriate venue for adjudication of the appeals.This detailed analysis covers the denial of concessions, duty confirmation, confiscation of goods, imposition of penalties, and the jurisdictional dispute regarding the appellate tribunal's venue for hearing the appeals.