TaxTMI 
TaxTMI 
2025 (7) TMI 1723
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....ischarged customs duty amounting to Rs. 18,15,06,093/-. Subsequently, it was found by the importer that the moisture content in the consignment had reduced and actual weight of iron ore fines in terms of DMT has also increased. In view of the increase in the quantity of exported goods, consequent to reduction in moisture content, the buyers paid consideration amounting to USD 6,10,51,076 in respect of such goods. Pursuant to the initiation of investigation proceedings and realizing the bonafide mistake committed by the Appellant, the Appellant discharged differential duty along with applicable interest, The SCN was issued to recover the differential duty along with interest and also proposing to impose penalty. The Adjudicating authority vide Order-in-Original dated 31.03.2016 confirmed the duty demand along with appropriate interest, and duty amount already paid by the Appellant was appropriated. Further, the adjudicating authority imposed equivalent penalty amounting to Rs. 37,99,193/- in terms of Section 114A of the Customs Act. Moreover, the goods were also held to be liable for confiscation under Section 113(i) of the Customs Act, 1962 with an option for redeeming the same aga....
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....in it was held that penalty under Section 114A of the Customs Act cannot be imposed when the assessee duly paid the duty along with interest immediately upon issuance of Show Cause Notice 2.7 In view of the above submissions, it is prayed the appeal may be allowed by setting aside the Order in Original. 3. The Ld. AR appearing for the Revenue submits that the exports have taken place during April 2010 to November 2011. The appellant has realized the higher value from the overseas importer within a few months of exporting the consignments. However, in spite knowing that they are required to pay the differential Export Duty on account of higher realization, the appellant did not pay the same till the issue was investigated and SCN was issued on 15.03.2015. As a matter of fact, they have paid the differential Duty along with interest after issue of the Show Cause Notice. Therefore, he justifies the penalty imposed and confiscation of the goods with option given to redeem the same. 4. We have heard both the sides and have gone through the Appeal papers and the submissions made. 5. Admittedly the issue is not in dispute. The appellant has exported consignments of Iron ore ta....
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....ms port or a customs airport appointed for the loading of such goods; (b) any goods attempted to be exported by land or inland water through any route other than a route specified in a notification issued under clause (c) of section 7 for the export of such goods; (c) any goods brought near the land frontier or the coast of India or near any bay, gulf, creek or tidal river for the purpose of being exported from a place other than a land customs station or a customs port appointed for the loading of such goods; (d) any goods attempted to be exported or brought within the limits of any customs area for the purpose of being exported, contrary to any prohibition imposed by or under this Act or any other law for the time being in force; (e) any goods found concealed in a package which is brought within the limits of a customs area for the purpose of exportation; (f) any goods which are loaded or attempted to be loaded in contravention of the provisions of section 33 or section 34; (g) any goods loaded or attempted to be loaded on any conveyance, or water-borne, or attempted to be water-borne for being loaded on any vessel, the eventu....
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....uty sought to be evaded or five thousand rupees, whichever is higher: Provided that where such duty as determined under sub-section (8) of section 28 and the interest payable thereon under section 28AA is paid within thirty days from the date of communication of the order of the proper officer determining such duty, the amount of penalty liable to be paid by such person under this section shall be twenty-five per cent of the penalty so determined; (iii) in the case of any other goods, to a penalty not exceeding the value of the goods, as declared by the exporter or the value as determined under this Act, whichever is the greater. Section 114A. Penalty for short-levy or non-levy of duty in certain cases. - Where the duty has not been levied or has been short-levied or the interest has not been charged or paid or has been part paid or the duty or interest has been erroneously refunded by reason of collusion or any wilful mis-statement or suppression of facts, the person who is liable to pay the duty or interest, as the case may be, as determined under sub-section (8) of section 28 shall also be liable to pay a penalty equal to the duty or interest ....
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....eclaration, false documents, etc. - Whoever makes, signs or uses, or causes to be made, signed or used, any declaration, statement or document in the transaction of any business relating to the customs, knowing or having reason to believe that such declaration, statement or document is false in any material particular, shall be punishable with imprisonment for a term which may extend to 1 [two years],or with fine, or with both. Section 135 . Evasion of duty or prohibitions. - [(1) Without prejudice to any action that may be taken under this Act, if any person - (a) is in relation to any goods in any way knowingly concerned in misdeclaration of value or in any fraudulent evasion or attempt at evasion of any duty chargeable thereon or of any prohibition for the time being imposed under this Act or any other law for the time being in force with respect to such goods; or (b) acquires possession of or is in any way concerned in carrying, removing, depositing, harbouring, keeping, concealing, selling or purchasing or in any other manner dealing with any goods which he knows or has reason to believe are liable to confiscation under Section 111 ....
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....been cited, while proposing to confiscate the consignments. Further we find that the goods have already been exported in 2010 and 2011 and are no more available for confiscation, as has been held by the Larger Bench in Shiv Kripa Ispat Pvt Ltd [2009 (235) ELT 623 (T-LB)] "9. We have given careful consideration to the submissions. As rightly pointed by the learned counsel, the Hon'ble High Court of Punjab & Haryana, in Raja Impex case (supra), has rendered decision on identical issue. One of the substantial questions of law placed before the High Court by the department was whether redemption fine under Section 125 of the Customs Act could be imposed where the goods were neither available for confiscation nor cleared under bond/undertaking. The Hon'ble High Court followed the ratio of the Apex Court's judgment in Weston Components case and held that, as the goods in question had been allowed to be cleared without execution of any bond/undertaking by the importer, no redemption fine could be imposed under Section 125 of the Customs Act in lieu of confiscation. Reproduced below is the relevant part of the High Court's judgment. "12. It may also be noticed here that i....