9911796707
|
Home
Issues:
- Appeal against imposition of penalties for import of prohibited items in scrap consignment. Detailed Analysis: The case involved an appeal against the imposition of penalties for importing a consignment of HMS scrap that also contained prohibited items, specifically fired rusted/used broker artillery shells. The adjudicating authority had confiscated the empty shells and the remaining scrap, imposing personal penalties. On appeal, the Commissioner (Appeals) set aside the confiscation of the scrap but upheld the confiscation of the empty shells and maintained the quantum of penalties imposed by the adjudicating authority. The main contention of the appellant was that since the confiscation of the scrap was set aside by the Commissioner (Appeals), they should not be liable to pay penalties for that quantity of scrap. The penalties were imposed at 5% of the value of the total consignment, which included both scrap and empty shells. The appellant argued that since the confiscation of the scrap was overturned, penalizing based on the total consignment value was unjustified. The Revenue contended that since the empty/broken shells were restricted items, the appellants were indeed liable for penalties. The Tribunal, in its judgment, acknowledged that only the quantity of empty/broker shells warranted confiscation as the rest of the scrap confiscation had been set aside. Therefore, the Tribunal found merit in the appellant's argument that the penalties imposed based on the total consignment value needed adjustment. Considering the circumstances, the Tribunal determined that the appellants should be liable for penalties equivalent to 10% of the value of the empty/broken shells in each consignment. In conclusion, the Tribunal disposed of the appeals by reducing the penalties to 10% of the value of the prohibited empty/broken shells in each consignment, recognizing that the penalties should be proportionate to the specific restricted items found in the imports.
|
