2023 (3) TMI 841 - AT - Customs

Tribunal upholds Rs.10,000 penalty for Customs duty delay. Fair decision emphasizes fairness and reasonableness.

The Tribunal upheld the Adjudicating Authority's decision to impose a nominal penalty of Rs.10,000 on the Appellant for non-finalization of provisionally ... Levy of penalty for non finalization of provisionally assessed Bills of Entry - HELD THAT:- It is seen that in case of 4 Bills of Entry, the assessment were not finalized without any fault on the part of the Appellant. The issue is also covered by the case law of Jai Balaji Industries Ltd. [[2021 (1) TMI 767 - CESTAT KOLKATA]] wherein, this Tribunal has held The department has not been able to establish any deliberate delay or any mala fide intention on the part of the appellant. As and when the appellant could gather the requisite documents they were presented before the assessing officers for finalizing the provisional assessments. In fact, out of the 35 Bills of Entry involved, 27 could be finalized even before passing of the adjudication order. Keeping all this in view, the adjudicating authority took a fair decision and imposed a nominal penalty of Rs.20,000/ which comes to Rs.2,500/- for each of the remaining 8 Bills of Entry yet to be finalized for want of all the documents. The Appeal is allowed holding that the Adjudicating Authority was correct in taking a lenient view imposing penalty of Rs.10,000/- Issues involved:The issues involved in the judgment are imposition of penalty on the Appellant for non-finalization of provisionally assessed Bills of Entry under Customs (Provisional Duty Assessment) Regulations, 2011.Details of the Judgment:Issue 1: Imposition of PenaltyThe Appellant imported 16 consignments under various Bills of Entry during 2011-2012 to 2014-2015. A Show Cause Notice was issued to them for non-finalization of provisionally assessed Bills of Entry. The Adjudicating Authority imposed a penalty of Rs.10,000/- under Regulation 5 of Customs (Provisional Duty Assessment) Regulations, 2011, taking a lenient view. The Revenue appealed seeking to enhance the penalty to Rs.2,00,000/- for the 4 Bills of Entry yet to be finalized. The Appellant argued that they submitted all necessary documents for finalization, and the Adjudicating Authority's decision was appropriate, citing a relevant case law. The Authorized Representative sought the enhanced penalty as per the regulations.Issue 2: Tribunal's DecisionAfter considering the facts, the Tribunal found that the non-finalization of 4 Bills of Entry was not due to any fault of the Appellant. Referring to a relevant case law, the Tribunal noted that there was no revenue implication or deliberate delay on the Appellant's part. The Adjudicating Authority's decision to impose a nominal penalty of Rs.10,000/- was upheld, as it was deemed fair and appropriate given the circumstances. The Tribunal allowed the Appeal, holding that the penalty imposed was justified, and no enhancement was warranted.This judgment highlights the importance of considering the specific circumstances and facts of each case while determining penalties under customs regulations, ensuring fairness and reasonableness in the imposition of penalties.