2015 (11) TMI 1597 - AT - Customs

Anti-Dumping Duty - evasion - Held that - As evidenced by the checklist, the bill of entry was finally assessed by the appraiser without levy of anti-dumping duty. The appellant paid such duty as per this assessment and had no reason to doubt that any further duty was payable. On intimating that anti-dumping duty was also payable, the appellant has immediately made the payment of ADD, of not only of this consignment but also of the earlier consignment imported in January, 2015. He also paid the applicable interest. This immediate response of paying entire duty demand along with interest along with the fact that the bill of entry assessed by the appraising officer did not contain element of anti-dumping duty persuades us to hold that the failure on the part of the appellant was only a bona fide omission. Further, sub-Section (2) of Section 28 provides that if a person is chargeable to duty or interest and the duty along with interest as ascertained by the proper officer is paid, then no show cause notice shall be served and no penalties to be imposed. In such circumstances we are of the considered view, that the confiscation of goods and imposition of redemption fine and penalty is totally unjustified. The impugned order is therefore not sustainable - appeal allowed - decided in favor of appellant.

Summary

Issues:
Challenge against order of confiscation, redemption fine, and penalties under Customs Act, 1962 for alleged evasion of Anti-Dumping Duty.

Analysis:
The appellant, engaged in pharmaceutical import and trading, imported Ascorbic acid without paying Anti-Dumping Duty (ADD), leading to goods' confiscation, redemption fine, and penalties. Appellant argued lack of awareness about ADD levy and immediate payment upon notification through CHA. Department defended order, citing ADD notifications and alleging evasion. Tribunal examined records and found appellant's payment post-notification, lack of ADD in assessment, and immediate compliance as evidence of inadvertent omission, not willful evasion. Section 28(2) of Customs Act, 1962 supports no penalty imposition if duty and interest paid. Tribunal deemed confiscation, fine, and penalties unjustified, setting aside the impugned order and allowing the appeal with consequential relief.