Interpretation of import notification conditions led to no interference with deletion of employee penalties in a coal diversion matter

Where alleged diversion of imported coal was said to breach Condition No. (vii) of Notification No. 43/2002-Cus., the High Court treated the interpretation of the notification condition as remaining unsettled because the Revenue's appeals on that question were already admitted. In that setting, the Tribunal's deletion of penalties imposed on the employees was not found fit for interference, and the deletion of penalties was upheld.

---

---

Issues: Whether, in the circumstances arising from alleged diversion of imported coal in breach of Condition No. (vii) of Notification No. 43/2002-Cus. dated 19-4-2002, the deletion of penalties imposed on the employees required interference.

Analysis: Revenue's appeals against the companies had already been admitted on the substantial question of law concerning the correct interpretation of the notification conditions, particularly Condition No. (vii). In view of that pendency and the impugned order of the Tribunal, the question was not free from doubt. On that basis, the order deleting penalties on the employees was not considered fit for interference.

Conclusion: The deletion of penalties on the employees was upheld and interference was declined.

---