2007 (1) TMI 396 - AT - Customs

Summary

Issues involved: Challenge against penalty imposition under Section 112 of the Customs Act for abandoning imported goods without placing orders.

Summary:

Issue 1: Penalty Imposition
The appellant contested the penalty imposed in OIO No SIB 20/05, dated 15-6-2006 amounting to Rs. 1.20 lakhs under Section 112 of the Customs Act, for abandoning imported goods without placing orders. The appellant argued that they abandoned the goods and should not be liable for penalty, citing precedents such as Garima Trade Services Ltd. v. CC, Visak, 2002 (146) E.L.T. 150 (Tri. - Che.) and CC, ICD, TKD, New Delhi v. Sewa Ram & Bros., 2003 (151) E.L.T. 344 (Tri. - Del) where it was held that penalty is not imposable when goods are abandoned and title relinquished. The Tribunal concurred, noting that Section 23(2) of the Customs Act provides for abandoning goods without duty imposition, thus ruling that penalty under Section 112 is not justified in cases of total abandonment. Consequently, the penalty imposition was set aside, and the appeal was allowed with any necessary consequential relief.

*(Pronounced and dictated in open Court)*