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Issues involved: Confiscation of High Speed Diesel Oil (HSD) imported by the appellant, imposition of redemption fine and personal penalties u/s 112(a)(ii) of the Customs Act, 1962, and the legality of importing goods under Para 4.15 of the Import-Export Policy.
Confiscation and Penalties: The Commissioner of Customs, Jamnagar confiscated the HSD oil imported by the appellant with an option to redeem on payment of Rs. 75 lakhs. Additionally, a personal penalty of Rs. 25 lakhs was imposed on them u/s 112(a)(ii) of the Customs Act. Other appellants also faced penalties under Section 112 of the Customs Act. Importing HSD: M/s. Adani Exports Ltd. imported HSD oil under the agency of a 100% EOU, M/s. Saheli Synthetics (P) Ltd. However, since M/s. Adani Exports Ltd. was not a canalized agency, 100% EOU, or authorized to import for supply to EOU, the imports were deemed unlawful. Investigations revealed that M/s. Saheli had authorized M/s. Adani to import the HSD, but the Revenue alleged a mala fide intention to evade duty and divert the oil to the domestic market. Policy Interpretation: The appellants argued that under Para 4.15 of the Import-Export Policy, goods can be imported and stored in bonded warehouses, later cleared for home consumption against a license. They cited DGFT clarifications allowing the clearance of HSD to 100% EOU and vessels as ship stores. The adjudicating authority rejected this claim, stating it was not raised during the initial investigation. Judgment: The Tribunal disagreed with the adjudicating authority, noting that Para 4.15 permits goods to be stored in bonded warehouses and cleared for home consumption. The appellants' failure to raise this defense earlier did not preclude them from doing so during adjudication, especially with DGFT clarifications supporting their actions. The Tribunal emphasized that benefits under alternative provisions of law can be claimed if admissible, and the confiscation and penalties were unjustified. Consequently, the impugned order was set aside, and all appeals were allowed in favor of the appellants.
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