2026 (4) TMI 1240

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.... And Honourable Mr.Justice Shamim Ahmed For the Appellant : Mr. A.P. Srinivas, Senior Standing Counsel For the Respondents : Mr. Hari Radhakrishnan JUDGMENT G.JAYACHANDRAN J. The Appeal is by the Department on being aggrieved by the order of Customs, Excise and Service Tax Appellate Tribunal. The respondent herein imported CT Scanner machine, availing the benefit of tax exemption un....

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.... the authorities. However, the Tribunal reduced the penalty from Rs. 9 lakhs to Rs. 1 lakh. The order reads as below:- 8. As held by the Hon'ble Supreme Court in Mediwell Hospitals' case, hospitals claiming the benefit of Customs Notification No.64/88 had continuing liability to comply with the conditions therein. This liability did not come to an end even when the Notification wa....

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....y shown that they did not render the goods liable for confiscation. Hence a penalty under Section 112(a) of the Customs Act is irresistible. However, in the facts and circumstances of the case, we are of the view that a penalty of Rs. 9 laksh to too much. We reduce the same to Rs. 1 laks (Rupees One Lakh only). In the result, the impugned order will stand sustained, with modification as to quantum....

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....ded on 01.03.1994 by Notification No.99 of 1994 is also not in dispute. Though the obligation under the notification may be construed as a continuing obligation, any action for enforcement of such obligation, even if saved under Section 159A of the Customs Act, must necessarily be initiated within the period of limitation prescribed under Section 28 of the Act. 6. In the present case, the maxim....