2004 (2) TMI 419 - AT - Customs

Summary

Issues: Duty demand, penalty under Sections 114(A) and 112(a) of the Customs Act, redemption fine, imposition of penalty on individuals, charitable institution status, duty exemption, withdrawal of duty exemption certificate.

The judgment pertains to a case involving a duty demand of approximately Rs. 7,47,564, with penalties imposed under Sections 114(A) and 112(a) of the Customs Act, 1962, along with a redemption fine and penalties on specific individuals. The appellant, a Charitable Public Trust operating a specialized hospital for Cardio-Vascular diseases, had paid the duty before the issuance of the show cause notice in 1998 for imports during 1993-94 under Notification No. 64/88. The Director General of Health Services later canceled the duty exemption certificate. The appellant argued that being a charitable institution and having paid the duty prior to the notice, no penalty should be imposed based on settled law.

Upon review, the Tribunal confirmed the duty demand but considered the appellant's charitable status, reducing the penalty on the institution to Rs. 2 lakhs. The penalties on the individuals named were set aside, acknowledging the charitable nature of the appellant and the pre-payment of duty before the show cause notice. The decision reflects a balance between upholding duty obligations and recognizing the charitable purpose served by the appellant, leading to a reduction in penalties while maintaining the duty demand.