Confiscation and duty recovery quashed where licensing records show export obligation discharged; customs lacks jurisdiction absent licence annulment ...
FOB is Incoterm reflecting exporter's transaction value; declared shipping bill value not automatically confiscable under s.113(i), s.125, ss.114(i) a...
CESTAT allowed the appeal and set aside the adjudication to the extent it proceeded without legal authority. The Tribunal held that breach of a pre-import condition attached only the statutory consequence expressly provided in s.3(12) of the Customs Tariff Act, 1975 - recovery of integrated tax - and does not permit imposition of confiscation under s.111(o) or penalty under s.114A of the Customs Act, 1962 as ancillary consequences. Further, in the absence of specific charging provisions authorising interest, redemption fine or other penalties, such monetary consequences cannot be imposed by invoking recovery machinery. The show-cause notice insofar as it sought those measures was quashed; appeal allowed.
CESTAT allowed the appeal and set aside the adjudication to the extent it proceeded without legal authority. The Tribunal held that breach of a pre-import condition attached only the statutory consequence expressly provided in s.3(12) of the Customs Tariff Act, 1975 - recovery of integrated tax - and does not permit imposition of confiscation under s.111(o) or penalty under s.114A of the Customs Act, 1962 as ancillary consequences. Further, in the absence of specific charging provisions authorising interest, redemption fine or other penalties, such monetary consequences cannot be imposed by invoking recovery machinery. The show-cause notice insofar as it sought those measures was quashed; appeal allowed.
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