2019 (7) TMI 61 - HC - Customs

Court grants relief to Airports Authority of India, criticizes Revenue for penalties imposed.

Airports Authority of India Versus Commissioner of Customs (Port -Export) Customs House, Customs, Excise and Service Tax Appellate Tribunal

Airports Authority of India Versus Commissioner of Customs (Port -Export) Customs House, Customs, Excise and Service Tax Appellate Tribunal - 2019 (368) ... Issues:- Denial of benefit of payment of Custom Duty under SFIS- Imposition of penalty and Redemption FineAnalysis:- The Appellant, Airports Authority of India (AAI), was denied the benefit of paying Custom Duty partly in the form of Scrips under the SFIS scheme due to an amendment in the scheme.- AAI imported radar equipment and other items in 2007 and the Scrips were denied as payment by the Assessing Authority citing the amendment.- The Tribunal partially allowed AAI's appeal, reducing penalties and granting relief regarding the Redemption Fine.- AAI argued that the Scrips were issued after export earnings and the amendment did not restrict their use for payment of custom duty.- The Revenue contended that as per the amendment, the items were not freely importable, justifying the denial of benefits under SFIS.- The Court found that the items were always restricted for import, and the Scrips remained valid, thus allowing AAI's appeal in full.- The Court criticized the Revenue for imposing penalties on a statutory body like AAI and emphasized fair treatment for public bodies in such cases.- The Court concluded that the Scrips could have been used for custom duty payment despite the amendment and allowed the appeal, leading to the dismissal of penalties.This detailed analysis of the judgment highlights the issues of denial of benefit under SFIS and the imposition of penalties and Redemption Fine, along with the arguments presented by both parties and the Court's final decision in favor of the Appellant, AAI.