2019 (6) TMI 1231 - HC - Customs

Court orders prompt penalty payment, directs Customs Department action. Future revisions impact refund eligibility. Specific directions issued.

The Court directed the petitioners to pay the penalty under Section 114 AA within a week, after which the Customs Department was instructed to implement ... Imposition of penalty u/s 114 AA of Customs Act - Seizure of contraband item - HELD THAT:- As far as Revenue implication is concerned, if the penalty imposed under Section 114 AA of said Act is paid within one week from the date of receipt of a copy of this order, there will be no impediment in the order of the Appellate Authority being given effect to. In other words, there will be no impediment in redemption i.e., implementation of the order made by the third respondent viz., Appellate Authority. Penalty imposed by the Original Authority under Section 114 AA and deleted by the Appellate Authority (third respondent) which is the sole issue in the revisions shall be paid by the writ petitioner to the Customs Department within one week from the date of receipt of a copy of this order - Thereafter, i.e., on payment of penalty imposed by Original Authority under Section 114 AA of said Act, respondents 1 and 2, more particularly, respondent No.2 shall implement (notwithstanding pendency of Revision) the order of the third respondent made in appeals i.e., by permitting redemption on payment of redemption fine as reduced by the Appellate Authority within a fortnight there from. Petition disposed off. Issues Involved:Implementation of appellate authority's order, payment of penalties under Customs Act, redemption process, pending revisions before Revisional Authority.Analysis:The judgment concerns three writ petitions where the primary issue is the implementation of the appellate authority's order made by the Commissioner of Customs (Appeals). The three petitioners had consignments seized by Customs Officers upon arrival in India, leading to penalties under Sections 112(a) and 114 AA of 'The Customs Act, 1962.' The Joint Commissioner of Customs passed orders confiscating goods and imposing penalties, which were appealed by the petitioners to the Commissioner of Customs (Appeals).The Appellate Authority partially allowed the appeals by reducing the redemption fine and setting aside the penalty under Section 114 AA, but confirming the penalty under Section 112(a) of the Customs Act. Subsequently, the Customs Department filed revisions to the Revisional Authority challenging the deletion of the penalty under Section 114 AA. However, due to the vacant position at the Revisional Authority, the revisions were pending, causing a halt in the redemption process for the petitioners.In response to this situation, the Court directed the petitioners to pay the penalty under Section 114 AA within a week, after which the Customs Department was instructed to implement the Appellate Authority's order by allowing redemption upon payment of the reduced redemption fine. The Court left open the question of whether the revisions would be withdrawn or continued to determine the applicability of Section 114 AA. If the revisions conclude with dismissal, the petitioners would be entitled to a refund.The judgment resolves the issues by providing specific directions for the payment of penalties, implementation of the appellate authority's order, and addressing the pending revisions. It ensures clarity on the redemption process and outlines the possible outcomes depending on the resolution of the revisions, ultimately disposing of all three writ petitions without costs.