2001 (9) TMI 427 - Commission - Customs

Customs Act: Appeal on Redemption Fine, Duty Exemption, and Penalty Imposition

IN RE: HMG INDUSTRIES LTD.

The case involved appeals against the Collector of Customs' order imposing a redemption fine and duty payment, exemption eligibility of imported ... Settlement application - Admission of Issues:1. Appeal against the order of Collector of Customs, Nhava Sheva regarding redemption fine and duty payment.2. Appeal before Hon'ble CEGAT on the exemption eligibility of imported machinery.3. Allegations of manipulated Chartered Engineer's certificate and duty evasion.4. Adjudication by Commissioner of Customs, Nhava Sheva and imposition of penalty.5. Appeal against Commissioner's order and subsequent proceedings before Settlement Commission.Issue 1: Appeal against Collector's OrderThe case involved an appeal by M/s. HMG Industries Ltd. against the order of the Collector of Customs, Nhava Sheva imposing a redemption fine of Rs. 15,00,000 and duty payment. The appeal was based on the grounds of exemption eligibility for imported machinery under the Export-Import Policy 1992-97.Issue 2: Appeal before Hon'ble CEGATThe applicant appealed before Hon'ble CEGAT challenging the Collector's order regarding the exemption eligibility of the imported machinery. The contention was that the machinery fell under a sector exempted from licensing requirements, but the CEGAT dismissed the appeals filed by both the applicant and the department.Issue 3: Allegations of Manipulated Certificate and Duty EvasionSubsequent investigations revealed allegations of a manipulated Chartered Engineer's certificate and duty evasion by the importer. The Commissioner of Customs, Nhava Sheva adjudicated the case, confirming the duty payment and imposing penalties on the applicant and its employees.Issue 4: Adjudication by Commissioner and Penalty ImpositionThe Commissioner confirmed the duty demand and penalties, ordering adjustment of the duty against the deposit made earlier. The applicant appealed against this order seeking various reliefs, including quashing the Commissioner's order and challenging the penalty imposition.Issue 5: Proceedings before Settlement CommissionWhile the case was pending before the Commissioner for de novo adjudication, the applicant filed an application before the Settlement Commission admitting the duty liability and seeking waiver of penalties and immunity from prosecution under the Customs Act and other Central Acts. The Commission allowed the application to proceed, fulfilling the conditions under the Customs Act.In conclusion, the judgment involved a series of legal proceedings concerning duty payment, penalty imposition, exemption eligibility, and duty evasion, ultimately leading to the Settlement Commission granting relief to the applicant based on the admitted duty liability.