2010 (1) TMI 1028 - AT - Customs

Summary

Issues involved: Refund of fine and penalty imposed by Commissioner of Customs under Section 125 and Section 112 of the Customs Act.

Summary:
The Appellate Tribunal CESTAT MUMBAI allowed the appeal filed by the appellant against the Commissioner of Customs' order imposing a fine of Rs. 8 lakhs under Section 125 and a penalty of Rs. 4 lakhs under Section 112 of the Customs Act. The Tribunal set aside the Commissioner's order, making the appellant entitled to a refund of the fine and penalty. However, the customs authorities did not consider the appellant's application for the refund. The appellant then filed a present application seeking a direction for the refund of the amounts.

The Judicial Member noted that the Assistant Commissioner of Customs (Central Refund Cell) received a letter mentioning the Tribunal's order that the vehicle was not liable to confiscation under Section 111(d) of the Customs Act, and therefore, the appellant was not liable to penalty under Section 112(a). The Member observed that the Assistant Commissioner seemed unaware of the effect of the Tribunal's order, which set aside the imposition of fine and penalty when the appeal was allowed.

Consequently, the Tribunal directed the Department to refund the amounts of fine and penalty deposited by the appellant. The Assistant Commissioner was given a fortnight to effect this refund, and compliance was to be reported by a specified date. In case of non-compliance, the Assistant Commissioner was required to personally appear before the Tribunal on the said date.