2013 (9) TMI 1147 - HC - Customs

Summary

Issues involved:
1. Interpretation of Section 111(f) of the Customs Act, 1962 regarding confiscation of vessel Smit Borneo.
2. Imposition of penalty under Section 112(a) of the Customs Act, 1962 on the appellant.

Interpretation of Section 111(f) of the Customs Act, 1962:
The Tribunal held that the vessel Smit Borneo was liable to confiscation under Section 111(f) of the Customs Act, 1962 because it had not been declared as goods in the IGM, despite the Customs authorities not insisting on the filing of an IGM and Bill of Entry for the vessel at that time. The appellant contested this decision, arguing that the established practice did not require such declarations. The High Court granted interim stay against the confiscation of the vessel pending appeal.

Imposition of penalty under Section 112(a) of the Customs Act, 1962:
The Tribunal imposed a penalty on the appellant under Section 112(a) of the Customs Act, 1962, even though it was acknowledged that the appellant had acted bona fide and in accordance with the Revenue's practice of not requiring a Bill of Entry and IGM for the vessel. The penalty was reduced to Rs. 5.00 lacs. The appellant agreed to pay the penalty without prejudice to its rights and contentions in the appeal.

Additional Details:
- The Tribunal's decision to uphold the confiscation of vessel Smit Borneo was based on the communication from the Dy. Commissioner of Customs stating that the intended import of the vessel would be treated as fresh imports and assessed after the Bill of Entry is filed.
- The appellant argued that despite the communication indicating the assessment would be done after the Bill of Entry is filed, the vessel could still be confiscated based on the Tribunal's order.
- After hearing arguments from both parties, the High Court granted interim stay against the operation of the Tribunal's order regarding the confiscation of vessel Smit Borneo.