TaxTMI 
TaxTMI 
2026 (4) TMI 1602
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.... penalties to Rs. 1,00,000/- each under section 112(a)(i) and section 114AA of the Customs Act, 19622. [the Customs Act] However, the redemption fine was maintained. 2. The facts, in brief, are that the appellant filed Bill of Entry No. 7464185 dated 12.02.2022 for the clearance of 1723 packages of "BRAD Nail". The consignment, weighing 27,000 Kgs with an assessable value of Rs. 27,06,181/-, was shipped by M/s Longyan Guoyuan Nail Manufactory, China, and classified under CTH 73170099. The Faceless Assessment Group [FAG] initially assessed the Bill of Entry but pushed it to the Port Assessment Group [PAG] due to the non-submission of the Legal Metrology Packaged Commodities [LMPC] certificate and the Steel Import Monitoring System [SIMS] ....
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....edeem them upon payment of a Redemption Fine of Rs. 3,50,000/-. Additionally, a penalty of Rs. 2,25,000/- was imposed under Section 112(a)(i), and a further penalty of Rs. 2,50,000/- was imposed under Section 114AA of the Customs Act, 1962. Aggrieved by the Order-in-Original dated 10.03.2022, the appellant filed an appeal before Commissioner (Appeals) challenging the order of the adjudicating authority. The Commissioner (Appeals) vide the impugned order partially modified the original adjudication order by reducing the penalties under Section 112(a)(i) and Section 114AA to Rs. 1,00,000/- each, while maintaining the amount of Redemption Fine imposed on the goods. Aggrieved by the said order, the appellant has filed the present appeal. 3. ....
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....itted that the appellant had violated Notification No. 17/2015-2020 by failing to obtain a Steel Import Monitoring System (SIMS) registration within the mandatory window (not later than the 15th day before arrival). Under Section 111(d) and Section 111(o) of the Customs Act, 1962, any goods imported contrary to any prohibition or policy condition are liable to confiscation. The fact that the certificates were obtained later does not erase the illegality that existed at the time of import. 4.1 Learned Authorized Representative further submitted that the redemption fine of Rs. 3,50,000/- on an assessable value of Rs. 27,06,181/- was moderate and should not be reduced further. He stated that the redemption fine was a "charge against the goo....
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....ord that LMPC Certificate was submitted on 03.03.2022 and SIMS Certificate on 18.02.2022. There is admittedly a violation of the DGFT import notification conditions by not submitting the documents in time. Nevertheless, these documents were submitted, subsequent to the filing of Bill of Entry, which can certainly be considered as a procedural lapse. Procedure lapses are minor errors or deviations from established procedures, that do not fundamentally alter the substantive outcome. We note that this Tribunal in M/s Paramount Surgimed Limited Vs Commissioner of Customs, Jaipur-1 [(2025 (10) TMI 336 - CESTAT New Delhi)] held as follows:- "8. I further observe that the object of penalties are to ensure that the tax payees should fulfil....