RAKSHA GLOBAL STEEL PVT. LTD. Vs. COMMISSIONER OF CUS. (GEN.), MUMBAI
LAWS(CE)-2015-5-55
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on May 15,2015

Raksha Global Steel Pvt. Ltd. Appellant
VERSUS
Commissioner Of Cus. (Gen.), Mumbai Respondents


Referred Judgements :-

COMMISSIONER OF CUSTOMS V/S. TUSHAR IMPEX [REFERRED TO]
JAIN EXPORTS PVT LIMITED JAIN EXPORTS PVT LIMITED VS. UNION OF INDIA [REFERRED TO]


JUDGEMENT

ANIL CHOUDHARY, J. - (1.)The appellant is in appeal against order of the Commissioner (Appeals) wherein the redemption fine as well as penalty imposed under Sec. 112(b) of the Customs Act were reduced. The brief facts are that the appellant imported goods declared as "M.S. TMPB DEFECTIVE COILS" vide Bill of Entry dated 2 -9 -2013 at JNCH, Nhavasheva Port. The net weight was declared as 108.708 MTs and the declared unit price as USD 578.852 PMT OF, the total assessable value as per declaration was Rs. 41,53,332/ - and duty payable was computed at Rs. 11,98,313/ -. The goods were examined under first check with specific examination order - to state whether the goods are restricted or not in terms of the licensing Note to Chapter 72 of ITC (HSN) of the Foreign Trade Policy 2009 -14. On examination the goods were found as declared, except that the goods were restricted item in terms of the Foreign Trade Policy. The Revenue felt that the same cannot be imported at JNCH without valid import licence. However the Licensing Note 1 to Chapter 72 of ITC (HSN), provides that seconds/defectives of items specified is permitted for import free except those in respect of which the C.I.F. Value of import is below the value specified against each of the item. For the Licensing Note 2 to Chapter 72 of ITC provides - prime steel items as specified below is permitted for imports free except those in respect of which the CIF value of imports is below the value specified against each of the item, wherein it is stated that under ITC (HS) Code 7208, HR coils can be freely imported having minimum CIF value of US $ 254 and CR coils/sheets classifiable under ITC Code 7209 can be imported freely having minimum value of US $ 351.
(2.)The goods were detained as the Revenue found that there is violation of the Foreign Trade Policy provisions as regards the quantum, port restriction and also in terms of Licensing Note 3 to Chapter 72, which was provided that the goods being second and defectives of steel items will be imported only through Customs Seaport at Mumbai, Chennai and Kolkata. The appellant realising his mistake admitted the same before the authority and vide letter dated 5 -9 -2013 submitted that there shipping agent due to oversight mentioned the port of destination as Mulund ICD and that it is genuine mistake and prayed for sympathetic consideration. He further submitted that they do not want a show cause notice. Vide Order -in -Original dated 20 -9 -2013, it was held that the importer had accepted the mistake committed by them and also the importer have not produced any valid import licence and hence the impugned goods were held liable for confiscation under Sec. 111(d) of the Act and the same was held redeemable on payment of redemption fine of Rs. 10,40,000/ - and further penalty, under Sec. 112(a) of the Act, was imposed for an amount of Rs. 4,20,000/ -.
(3.)Being aggrieved the appellant preferred an appeal before the Commissioner (Appeals), who vide the impugned order has been pleased to allow the appeal in part and reduced the redemption fine to Rs. 4,20,000/ - and also reduced the penalty under Sec. 112(a) to Rs. 50,000/ -. The learned Commissioner (Appeals) also held that penalty and fine can be imposed on the basis of facts, placing reliance on the ruling of the Hon'ble Supreme Court in the case of Jain Exports Private Ltd. v/s. Union of India - : 1993 (66) E.L.T. 537 (S.C.), wherein it is laid down that quantum of redemption fine should depend on the facts and circumstances of each case and one point action of the assessee. Further the Commissioner (Appeals) found that there is no deliberate defiance of law and the issue involves a venial breach only. Being aggrieved the appellant is in appeal before this Tribunal.
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