2009 (10) TMI 749 - AT - Customs

Summary

Issues Involved:
The issue involves the Department's appeal for stay of operation of an order where the Commissioner of Customs set aside an adjudication order against the respondent regarding the confiscation of imported goods and imposition of fine and penalty.

Adjudication of Confiscation and Penalty:
The Asst. Commissioner of Customs confiscated goods valued at Rs. 8,67,231/- under Section 111(d) of the Customs Act for import without Import-Export Code (IEC). The Department appealed against the Asst. Commissioner's jurisdiction to adjudicate the case involving goods over Rs. 2 lakhs. The appellate authority disapproved the proposal for fine and penalty, stating that confiscation and penalty provisions were under the FT(D&R) Act, not the Customs Act. The Department challenged this finding.

Legal Interpretation and Case Law:
The Department, supported by the ld. SDR, argued that goods imported without IEC are liable to confiscation under Section 111(d) of the Customs Act. Citing case law and Supreme Court judgments, the SDR contended that the prohibition under Section 7 of the FT(D&R) Act makes such imports subject to penalty under Section 112 of the Customs Act.

Ex Parte Order and Quanta of Fine and Penalty:
The respondent contended that the Additional Commissioner's order was ex parte due to lack of hearing. They argued that the fine and penalty imposed by the Asst. Commissioner were promptly paid and no grievance was held. The Additional Commissioner imposed a higher fine and penalty, alleging the importer as a habitual offender without substantial evidence. The respondent challenged the increase in fine and penalty.

Judgment and Decision:
After considering submissions, the Tribunal found that the Additional Commissioner's higher fine and penalty were unwarranted without sufficient grounds. The issue of the quanta of fine and penalty was decided in favor of the respondent, setting aside the impugned order and limiting the fine and penalty to Rs. 2 lakhs and Rs. 20,000/- respectively. The appeal was disposed of along with the stay application.