1999 (11) TMI 318

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....indicated shortlanding against item No. 4, 9 and UB-1 of the above said IGM in out turn report and the appellant was called upon to explain the same under show cause notice for action under Section 116 of the Customs Act. On adjudication the Assistant Collector by his order dated 12-8-1994 imposed penalty of Rs. 86,885/- for shortlanding of the goods under items 9 and UB-1 of the IGM, accepting No. 4. The appeal was preferred by the respondents on the ground that the penalty has been levied ten years after issue of show cause notice and they did not possess any documents in support of their case at the distant point of time, the impugned order was passed allowing the appeal and setting aside the order of the Assistant Collector. Hence this ....

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.... a penalty. 4.  Perused the orders of lower authorities and appeal memorandum. From the preamble of the order-in-original under the heading 'Brief Facts of the Case' the Assistant Collector of Customs, Manifest Clearance Department, (Mumbai), has considered the written submission of the respondents dated 9-8-1994 regarding item Nos. 4, 9 and UB-1 and accepted the case of the respondents that there is no shortlanding of item No. 4. He has discussed on the Items 9 and UB-1 and held against the respondents. He has rejected the contention of the respondents that the personal effects are not dutiable and classifiable under Heading 100.01 and correct statutory rate of duty is 300. So the penalty was imposed. In the impugned order the lear....

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....roceedings for the levy of penalty under Section 116 of the Customs Act are of a quasi judicial nature and the concerned party should be accorded a proper hearing (Section 124 of the Customs Act). Proceedings commenced by the Customs Officer levying the penalty are of quasi judicial nature and Section 124 of the Customs Act describes that no order imposing a penalty shall be made unless such person is given a reasonable opportunity of being heard in the matter. It will also include an opportunity to such person to give evidence or to summon witnesses to give evidence in support of his contention (para 9). As contended by the respondents in this case, even though the proceedings were initiated early, the hearing was abnormally delayed. As co....