2005 (12) TMI 320 - AT - Customs

Summary

Issues:
1. Import and export of vessels for execution of a contract.
2. Confiscation and redemption of vessels under Customs Act, 1962.
3. Penalty imposition under Sections 111(j) and 112(a) of the Customs Act, 1962.
4. Prima facie findings on confiscation, penalties, and waiver of pre-deposit.
5. Different views on waiver of pre-deposit by the judges.

Import and export of vessels for execution of a contract:
The case involved a company incorporated in Korea, working as a contractor for ONGC in India. The company imported various items for project execution and appointed a Custom House Agent for clearance of goods. The vessels imported were to be cleared at a reduced duty rate under a specific notification.

Confiscation and redemption of vessels under Customs Act, 1962:
After inquiries by the Mumbai Custom House, vessels were seized, and a notice was issued for confiscation under Section 111(j) of the Customs Act, 1962. The Commissioner ordered confiscation but allowed redemption on payment of a fine amounting to 5% of the goods' value.

Penalty imposition under Sections 111(j) and 112(a) of the Customs Act, 1962:
Penalties were proposed under Section 112(a) on the importing company and an individual. The Commissioner imposed penalties based on the assessments, but the Tribunal found no evidence of knowing concern for penalty imposition at that stage.

Prima facie findings on confiscation, penalties, and waiver of pre-deposit:
The Tribunal found that the confiscation under Section 111(j) could not be upheld, and penalties could not be justified due to lack of evidence of deliberate wrongdoing. The judges ordered a waiver of pre-deposit of penalties and stayed recovery pending further hearings.

Different views on waiver of pre-deposit by the judges:
While both judges agreed on the waiver of pre-deposit, one judge emphasized the lack of evidence of knowledge regarding misrepresentation by the Custom House Agent as a reason for the waiver. The judges maintained status quo and directed further proceedings, considering the circumstances and legal provisions under the Customs Act, 1962.