2007 (1) TMI 311 - AT - Customs

Adjudication for confiscation of seized goods - Territorial jurisdiction - Penalty - Imposition of - Redemption fine - Quantum of

Summary

Issues: Jurisdiction of Commissioner of Customs for adjudication, Imposition of penalties under relevant sections, Quantum of fine justification, Penalty imposition on involved individuals

Jurisdiction of Commissioner of Customs for adjudication:
The case involved M/s. Sanjida Fabrics, a 100% EOU, diverting fabrics from a SEZ unit to the local market without duty payment or permission. The issue raised was whether the Commissioner of Customs had the jurisdiction to adjudicate the case. The appellant contended that the duty demand should have been made by the Central Excise Officer in charge of the EOU, citing precedents. However, the Tribunal held that the Commissioner of Customs had jurisdiction over the matter as per relevant provisions and notifications. The Tribunal differentiated the present case from previous decisions, emphasizing that the seized goods were recovered within the Commissioner's jurisdiction, thus upholding the adjudication's validity.

Imposition of penalties under relevant sections:
Regarding the penalties imposed under Section 114A on M/s. Sanjida Fabrics for violations under Sections 111(o) and 111(j), the appellant argued that penalties under Section 112(a) should have been applied. The Tribunal agreed with the appellant, citing a precedent, and set aside the penalties under Section 114A. However, the duty demand was upheld due to the misuse of goods. The Tribunal also addressed the quantum of fine, justifying the imposed amount of Rs. 5 lakhs against the seized goods' value of Rs. 23 lakhs, considering the clandestine removal with intent to evade duty.

Penalty imposition on involved individuals:
In the case of Shri Ghadyali, the yarn broker, who admitted his offense, the penalty imposed was upheld as he did not contest further. The Tribunal found the penalty justified and appropriate in this context. The appeals by M/s. Sanjida Fabrics and Shri Ghadyali were disposed of accordingly, with the penalties and fine adjusted as per the Tribunal's rulings.

This judgment by the Appellate Tribunal CESTAT, Ahmedabad, addressed the jurisdictional aspects of the case, the correct application of penalties under relevant sections, the justification of the imposed fine, and the penalty imposition on the involved individuals based on their admissions and contestations. The detailed analysis provided clarity on each issue raised, citing legal precedents and relevant provisions to support the Tribunal's decisions.