2013 (11) TMI 1562 - AT - Customs

Summary

Issues involved: Appeal against penalty imposed u/s 112 of the Customs Act, 1962.

The appellant imported goods under EPCG license but failed to fulfill the export obligation due to adverse market conditions. The Assistant Commissioner of Customs imposed a duty demand, encashed the Bank Guarantee, and imposed a penalty of &8377; 3,80,000 for breach of the EXIM policy. The appellant appealed, arguing that penalty imposition was not justified based on previous Tribunal decisions. The appellate authority reduced the penalty to &8377; 2,00,000. The Tribunal, citing previous decisions, quashed the penalty imposed by the adjudicating authority and upheld the appeal, with no costs awarded.