TaxTMI 
TaxTMI 
2019 (7) TMI 1305
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....the imported goods were supplied by M/s. Mehment Dogan Docotton Group, Turkey and the Country-of-Origin was Turkmenistan. The goods being one which required "No Objection" Certificate from Plant Quarantine (hereinafter referred to as 'PQ') authorities, the imported goods were subjected to first check examination. 2.2 The Plant Quarantine Officer (WS) of the Directorate of Plant Protection, Quarantine & Storage, Plant Quarantine Station, Tuticorin, however, vide communication dated 04.05.2018 ordered for deportation/destruction of the subject import consignment as per Clause 3 (16) of the Plant Quarantine (Regulation of Import into India) Order, 2003 since, according to him, the consignment was imported under "Fake PSC" (Fake Phytosanitary ....
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.... allowed PQ Clearance on 24-09-2018 for the above consignments and hence, I find that this is a fit case for remanding back to the original authority to decide it based on the PQ Clearance issued on 24-09-2018 by PQ Authorities, Tuticorin." (Emphasis supplied) Both the Revenue as well as the assessee accepted the above order of the First Appellate Authority without challenging the same in any appeal. 3.1 Based on the above remand order, the Original Authority resumed adjudication proceedings and vide Order-in-Original (Denovo) dated 10.12.2018, after accepting the remarks of the PQ Authorities, concluded that the PQ clearance was given by relaxing the norms, but however, imposed a penalty of Rs. 2,00,000/-, the payment of which was made ....
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.... threshold, the penalty should be confirmed. He also contended that the assessee has nowhere disputed the findings as to the fakeness of the Phytosanitary Certificate and therefore, the penalty imposed under Section 114AA ibid becomes mandatory. 6.2 He also drew support from the findings of the lower authorities. 7. I have considered the rival contentions, gone through the decisions/orders and the relevant provision of law. 8.1 Section 114AA reads as under : "SECTION [114AA. Penalty for use of false and incorrect material. - If a person knowingly or intentionally makes, signs or uses, or causes to be made, signed or used, any declaration, statement or document which is false or incorrect in any material particular, in the transaction....
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....lant procured a second report i.e., PSC which is dated 24.09.2018, wherein the same issuing authority has remarked differently and cleared the cotton for home consumption. Taking note of this development, the Ld. First Appellate Authority remanded the matter and the observations are already extracted elsewhere in this order and the gist of the First Appellate Authority's order is - to re-decide based on PSC dated 24.09.2018. Following the First Appellate Authority's direction, the Adjudicating Authority acts upon the second PSC and grants substantial relief, but for penalty under Section 114AA. The question is, therefore, when admittedly no fault is found by the authority, can its report be still held to be available, if not for anything, b....