Appeal allowed, late fee order set aside for subsequent buyer. Late fees should be charged only to importer.

The appeal was allowed, and the impugned order imposing penal charges for late presentation of the Bill-of-Entry was set aside. The Member (Judicial) found the levy of late fees on the appellant, a subsequent buyer, to be unjustified under the law as it should only be charged from the importer per se. The order was deemed unsustainable due to the lack of justification for imposing the late fee, and consequential reliefs were granted to the appellant in accordance with the legal provisions.

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Issues:
Levy of penal charges for late presentation of Bill-of-Entry.

Analysis:
The appeal was filed against the Order-in-Appeal passed by the Commissioner of G.S.T. and Central Excise (Appeals) regarding the imposition of penal charges for late presentation of the Bill-of-Entry. The vessel carrying Heavy Melting Scrap arrived at Tuticorin Port, and due to financial problems faced by the consignee, a new buyer, the appellant-firm, was offered the consignment for sale. The consignment details were subsequently amended, and penal charges were paid to avoid demurrage and CFS charges. The appellant appealed the levy of penal charges, which was rejected by the Commissioner, leading to the present appeal before the forum.

During the hearing, the appellant's advocate cited previous cases where the CESTAT had deleted late fees in similar situations. The Authorized Representative for the Revenue, however, supported the lower authorities' findings. The Member (Judicial) referred to the previous decisions of the CESTAT where it was observed that the late fee was not justified in the appellant's case. The Commissioner (Appeals) had directed the adjudicating authority to charge late fees from the date of agreement between the shipper and the appellant, which was deemed incorrect. The Member (Judicial) highlighted that the appellant was not the first importer but a subsequent buyer, and the Act only allows charging late fees from the importer per se. The order imposing penal charges was deemed unsustainable and set aside based on the lack of justification for charging the late fee.

Therefore, the impugned order was found to be unsustainable, and the appeal was allowed with consequential reliefs as per the law. The penal charges for late presentation of the Bill-of-Entry were set aside, considering the specific circumstances of the case and the legal provisions governing the imposition of such charges.

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