TaxTMI 
TaxTMI 
2025 (2) TMI 1294
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....why; a) The goods imported vide the 31 Bills of Entry should not be confiscated under section 111(d) of the Customs Act, 1962 for noncompliance of the said notification issued by DGFT. b) Penalty under section 112(a) of the Customs Act, 1962 should not be levied on the importer for his acts of omission or commission and c) Redemption fine under section 125 of the Customs Act, 1962 should not be levied on the goods in lieu of confiscation. 2. The Adjudicating authority vide Order in Original No.KOL/CUS/ADC/PORT/Gr.1/90/2021 dated 17.12.2021, confiscated the goods u/s 111(d) of CA'62 and imposed redemption fine of Rs. 2,15,28,000/-. Besides, penalty of Rs. 2,15,28,000/- was imposed. The appeal filed by the appellant before the Commissioner (Appeals) was dismissed by him on the ground that pre-deposit condition was not fulfilled. Being aggrieved the appellant is before the Tribunal. 3. The Ld. Advocate appearing on behalf of the appellant makes the preliminary submission about the issue of pre-deposit. He submits that since the consignments were held up, which are perishable items, the appellants moved a Misc. Application before the Hon'ble Hig....
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....de Notification No. 04/2015-2020 dated: 25.04.2018, the Yellow Peas under Exim code 07131000 was revised from free to restricted for a period of three months only, vide Notification No. 15/2015-2020 dated: 02.07.2018, the restriction on import of peas was extended for a further period of three months i.e. till 30.09.2018. By virtue of Notification No. 32/2015-2020 dated: 30.08.2018 import of peas restriction was further extended till 30.09.2018. Notification No. 37/20152020 dated: 28.09.2018 the restriction of import of peas classified under EXIM code. 07131000 (Including Yellow peas, Green peas, Dun peas and Kaspa peas) was further extended till 31.12.2018. Trade Notices No. 06/2018 and 12/2018 both dated: 18.05.2018 and 19/2018 dated: 05.07.2018 were also issued by DGFT setting out the procedure and implementation of the above Notifications. 5.2 In the meantime, the appellant being a regular importer of peas for trading purpose had a firm contract with the Foreign supplier M/S UEL International FZE, to export to the applicants to supply the quantity of Toor, Green peas, Yellow peas and Black Matpe as specified in the contract No. UEU/GP/18-19/51, UELL/GP/18-18/52, UELI/GP/18-1....
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....ants contested the amendment of import policy in the High Court of Calcutta vide Writ Petition No. 25164 (w) of 2018, wherein Commissioner of Customs, Kolkata was also respondent, on the ground that such an amendment in Foreign Trade policy is the sole prerogative of the Central Government. The Honourable High Court of Calcutta vide their Interim Order dated: 14.12.2018 in terms of the prayer to the writ petition granted stay on the DGFT Notifications. (Copy of the order and Notifications are collectively annexed as Annexure-D to the Appeal). 5.5 Since the perishable consignments were held up, they moved a Misc. Application before the Hon'ble High Court Calcutta. After considering the factual position of the case the Honourable High Court on Misc. application being 25164 (w) 2018 passed an interim order to the effect that the goods imported should be released forthwith. Accordingly, goods were allowed for clearance provisionally keeping security deposit of 10% of the assessable value towards probable fine and 10% of duty towards penalty, copies of which are annexed as Annexure - C. 5.6 In the meantime, the importer in Chennai and other ports also filed separate applicatio....
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....e before the Hon'ble Rajasthan High Court. In the cited Final Order of the Tribunal, there is also reference of various importers challenging the validity of the DGFT Notifications before various High Courts, which ultimately came to be decided by the Supreme Court, upholding the validity of the DGFT Notifications. The appellant submits that the copies of the contracts would prove that the goods were purchased before the amendments carried out by the DGFT. Since the issue was being litigated before various High Court, it cannot be said that the appellants have imported the restricted goods deliberately under open license policy. He submits that in the cited case of Rahul Agro this Bench had considered the factual details and the issue of litigation taking place before all the High Courts and the Tribunal has been kind enough to reduce the Redemption Fine to Rs.25 lakhs from the initially imposed Redemption fine of Rs.2.10 crores and the Bench has reduced the penalty to Rs.25 lakhs from the initially imposed penalty of Rs.4 crores. 5.11 With these submissions, the Ld Advocate prays that even in the present case, the Redemption Fine and the Penalty imposed may kindly be reduced pr....
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....and for the Duty component of Rs.10,76,35,714, they have given security of Rs.1,07,63,571, as has been observed at Para 7 above. 11. The Kolkata Tribunal in the case of CC Ports Kolkata Vs Rahul Agro Industries vide Final Order No.76806/2024 dated 03.09.2024, dealing with identical issue, has held as under : 13. In that circumstances, it is to be seen that during the pendency of the proceedings, various authorities had considered the stay of operation of the impugned notification and in one such case the Adjudicating Authority i.e. Commissioner of Customs, Chennai-Il, Chennai vide order dated 23.03.2020 has refrained from imposing redemption fine on the importer and a nominal penalty of Rs. 50,000/- was imposed. 14. In the impugned order also, the Ld. Commissioner (Appeal) has considered the submission made by the Respondent and proceeded to hold that redemption of final penalty are on higher side and reduced the redemption from penalty. But we find that although Ld. Commissioner (Appeal) has reduced the redemption fine and penalty but in the facts and circumstances of the case as appellant being regular importer and as the earlier notification made the restric....
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....are modified to Rs.20 lakhs of penalty and Rs.20 lakhs of Redemption fine. 14. Accordingly, we partly allow the appeal by reducing the Penalty to Rs.20 Lakhs and Redemption Fine to Rs.20 lakhs. 15. The appellant would eligible for consequential relief, if any, as per law. 16. The appeal stands disposed off thus. (Order pronounced in the open court on 20-02-2025.) ============= Document 1 SI No Bill of Entry No & Date 10% of Assessable value as SD with Customs receipt Number 10% of Duty as Penalty with Customs Receipt Number 1 9835020 Date: 29.01.2019 5,69,012/- Receipt No. M-350 2,84,506/- Receipt No.M-351 2 9809466 Date: 28.01.2019 5,73,750/- Receipt No. M-352 2,86,875/- Receipt No. M-353 3 9835879 Date: 29.01.2019 5,70,934/- Receipt No. M-354 2,85,467/- Receipt No. M-355 4 9816936 Date: 28.01.2019 5,74,600/- Receipt No. M-356 2,87,300/- Receipt No. M-357 5. 9823868 Date: 28.01.2019 5,72,364/- Receipt No. M-358 2,86,182/- Receipt No. M-359 6. 9836706 Date: 29.01.2019 5,71,157/- Receipt No. M-360 2,85,579/- Receipt No. M-361 7. 9790622 Date: 25.01.2019 2,23,205/- Receipt No. M-362 1,11,602/- Receipt No. M-363 8 9812620 Date: 28.01.2019 5,65,....