2005 (10) TMI 412 - AT - Customs

Summary

Issues:
Penalty imposition for delayed filing of Import General Manifest (IGM) by Console agents/freight forwarders.

Analysis:
The judgment involves the issue of penalty imposition on Console agents/freight forwarders for delayed filing of Import General Manifest (IGM) under Section 30 of the Customs Act. The appellants, registered and approved by the Commissioner of Customs, were alleged to have contravened the provisions by filing IGMs after the arrival of the aircraft from 1-8-2004 to 31-8-2004. The Revenue issued a Show Cause Notice for penalty imposition, which the appellants contested, citing reasons beyond their control for the delay, including failures in the Customs EDI System. The Commissioner (Appeals) imposed penalties of Rs. 1,000/- per IGM, which the appellants challenged.

The judgment considered the justifiability of imposing penalties in the circumstances of the case. The Commissioner (Appeals) justified the penalties based on Board's Circular and legal provisions, holding the Console agents responsible for meeting deadlines in the cargo movement chain. However, the appellants argued that the delay was not solely their fault but also due to the Customs EDI System failures, which the Commissioner did not adequately address. The judgment noted that if system failures were a factor, the appellants couldn't be solely blamed for the delays. It highlighted the need for Revenue to streamline the system to prevent such failures. The absence of written warnings before penalty imposition and the lack of reference to warnings in the Show Cause Notice were also noted.

The judgment referenced the Apex Court's ruling in a similar case, emphasizing that penalties should be nominal for first-time offenses without revenue loss. While upholding the penalty imposition, the judgment reduced the penalty to Rs. 200/- per IGM, considering the circumstances and the need for deterrence against future negligence. It directed the computation of penalties based on the number of IGMs mentioned in the Commissioner (Appeals)'s order and allowed for refunds if excess payments were made. The appeals were allowed with the revised penalty amount, providing consequential relief to the appellants.