2009 (7) TMI 1042 - AT - Customs

Summary

The Appellate Tribunal CESTAT CHENNAI issued a judgement regarding the application for waiver of a penalty of Rs. 50 lakhs imposed on the assessees under Section 112(a) of the Customs Act, 1962. The penalty was imposed due to the importation of a tug without filing a Bill of Entry and not paying the required duty. The tribunal noted that along with the tug, two barges were imported, with the manifest filed for the tug and Bills of Entry filed for the barges, resulting in the payment of duty. The tug was imported. The tribunal found that the tug was imported for a project operation that did not materialize, and after obtaining permission from customs, the tug was moved for repairs to Vizag, with the Bill of Entry filed subsequently and the duty paid. Given these circumstances, the tribunal concluded that no penalty was warranted, and therefore waived the predeposit of the penalty and stayed its recovery during the appeal process. The tribunal also granted the prayer for early hearing of the appeal due to the duty amount and penalty exceeding Rs. One crore, with the appeal scheduled for hearing on 8-9-09. The order was pronounced and dictated in open court by Ms. Jyoti Balasundaram and Dr. C. Satapathy, JJ, with Shri S. Murugappan representing the appellant and Ms. Indira Sisupal representing the respondent.