2023 (10) TMI 294 - AT - Customs

Tribunal revokes penalties under Customs Act for import violation, citing re-exportation and precedents.

M/s. Goyal Trading Co., M/s. Gulab Fibres, M/s. Unitec Inc. Versus Commissioner of Customs, Nhava Sheva-III

The Tribunal set aside all penalties imposed under Section 112(a) of Customs Act, 1962, in the case involving the import of Viscose Soft Waste without ... Levy of penalty u/s 112(a) of Customs Act, 1962 - contention of appellant is that earlier similar goods were allowed for clearance has not been contested by Revenue - re-export of goods - HELD THAT:- It is seen from the findings and order in the precedent decision of this Tribunal in the case of Siemens Public Communication Networks Ltd. [2001 (1) TMI 686 - CEGAT, KOLKATA] when the goods are allowed to be re-exported, neither redemption fine nor duty was required to be paid. At the same time, penalty is also not to be imposed on the importers. The penalties imposed in these six appeals are not justified. All the penalties imposed under Section 112(a) of Customs Act, 1962 set aside - appeal allowed. Issues:- Import of Viscose Soft Waste without required permission- Confiscation of goods and imposition of penalties under Section 112(a) of Customs Act, 1962Import of Viscose Soft Waste without required permission:The case involved six appeals arising from common impugned order-in-appeal dated 30.10.2019. Three appellants imported Viscose Soft Waste without obtaining necessary permission from Ministry of Environment, Forest and Climate Change as per Hazardous and Other Wastes Rules, 2016. The original authority confiscated the goods and directed re-export without imposing any redemption fine. Penalties were imposed on the appellants under Section 112(a) of Customs Act, 1962. The Commissioner (Appeals) upheld the original authority's orders, leading to the appeals before the Tribunal.Confiscation of goods and imposition of penalties:The learned counsel for the appellant argued that similar goods had been previously cleared, indicating no intention to contravene laws. All appellants paid penalties and re-exported the goods. Citing precedent cases, the counsel contended that penalties are not applicable when goods are re-exported. The Revenue argued that the imposed penalties were justified. The Tribunal noted the past clearances of similar goods and the re-exportation by the appellants. Referring to the Siemens Public Communication Networks Ltd. case, it held that penalties under Customs Act were not warranted when goods were re-exported. Consequently, all penalties imposed under Section 112(a) of Customs Act, 1962 were set aside, and the appeals were allowed.Separate Judgement:No separate judgment was delivered by the judges in this case.