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of <h1>Tribunal Upholds Duty and Interest, Sets Aside Penalty Due to Lack of Suppression or Willful Misstatement in Customs Case.</h1> <h3>Apollo Tyres Limited Versus Commissioner of C. -Mundra</h3> Apollo Tyres Limited Versus Commissioner of C. -Mundra - TMI Issues Involved: Classification of imported goods, imposition of penalty u/s 114A of the Customs Act, 1964.Classification of Imported Goods:The appellant's factories in Kerala, Gujarat, and Tamil Nadu are engaged in manufacturing Automotive Tyres. The issue arose from the import of Shell Flavex Oil 595 B/H for use in the Gujarat factory. Initially classified under CTH 38122090 by all Custom Houses, the DRI reclassified it under CTH 27079900. The appellant paid the duty without contesting the changed classification. The dispute centered on whether the penalty u/s 114A was justified.Imposition of Penalty u/s 114A:The appellant contended that the nature of the goods could only be known after detailed testing, and therefore, no mala fide intention could be attributed to them. They argued that since all Commissionerates were classifying the goods under CTH 38122090, the correct classification could only be determined after detailed analysis. The appellant paid the duty before the show cause notice was issued, which, according to them, negated the need for the penalty. The Tribunal agreed, noting that the appellant acted in good faith and that the duty was paid without suppression of facts or willful misstatement, absolving them from penalty under Section 114A.Conclusion:After considering both sides' submissions and reviewing the facts, the Tribunal upheld the duty demand and payment of interest. However, the penalty imposed u/s 114A was set aside, as the appellant's actions did not meet the criteria for penalty under the said section. The appeal was allowed in favor of the appellant.
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