2024 (2) TMI 207 - AT - Customs

Tribunal Reduces Unjustified Penalty for Late Import Documents Submission, Reinforces Reasonable Penalty Standards.

The Tribunal set aside the enhanced penalty of Rs.50,000 imposed by the Commissioner (Appeals) for the late submission of import documents, reinstating ... Enhancement of penalty - non-submission of documents by the appellant in time for final assessment of the Bills of Entry - HELD THAT:- On similar set of facts, the said issue has been considered by this Tribunal in the case of M/S. SHYAM STEEL INDUSTRIES LIMITED VERSUS COMMISSIONER OF CUSTOMS (PREVENTIVE) , BHUBANESWAR [2024 (1) TMI 473 - CESTAT KOLKATA], wherein this Tribunal has held The appellant has already submitted the documents necessary for finalization of the provisional assessment while submitting their reply to the show cause notice. Thus, I find that the penalty of Rs.5,000/-(Rupees Five Thousand only) imposed by the Assistant Commissioner would be sufficient to meet the ends of justice. As the said issue has already been settled by this Tribunal, therefore, following the precedent decision of this Tribunal, it is held that the order of the ld.Commissioner ( Appeals ) is not sustainable on the eyes of law. Accordingly, the same is set aside. Appeal allowed. Issues involved:The appeal against the enhanced penalty for non-submission of import documents in time for final assessment of Bills of Entry.Details of the Judgment:1. The appellant imported coal through Dhamra Port in Odisha and the goods were provisionally assessed under Section 18 of the Customs Act, 1962. The appellant was directed to submit import documents within 30 days, but failed to do so. Later, the documents were filed for final assessment. The adjudicating authority imposed a penalty of Rs.5,000 for late submission, which was increased to Rs.50,000 by the ld. Commissioner (Appeals).2. The appellant argued that the penalty enhancement during the pendency of final assessment is not justified. Citing a previous Tribunal decision in the case of M/s Shyam Steel Industries Limited, the appellant contended that reduced penalties can be imposed for procedural violations.3. After hearing both parties, the Tribunal referred to the case of M/s Shyam Steel Industries Limited, where it was held that penalties should be reasonable for delays in document submission without revenue implications. The Tribunal found that the appellant had already submitted necessary documents for final assessment, and the penalty of Rs.5,000 imposed by the Assistant Commissioner was sufficient. The Tribunal set aside the enhanced penalty of Rs.50,000 per Bill of Entry.4. Relying on the precedent set by the Tribunal's previous decision, the Tribunal concluded that the ld. Commissioner (Appeals)'s order was not sustainable in the eyes of the law and set it aside. Consequently, the appeal filed by the appellant was allowed with any consequential relief.(Dictated and pronounced in the open court)