2017 (4) TMI 1296 - AT - Customs

Quantum of penalty - case of Revenue is that the penalty imposed is very less considering the amount of drawback sanctioned to the respondent herein - Held that - no penalty is imposable u/s 117 (as there are no penal provisions in Sections 74 and 75 of Customs Act, 1962) thus being a residuary provisions which can be invoked against any individuals/persons failing to comply with the provisions of Customs Act, 1962 where express penalty is otherwise not provided for such contraventions or failure. Accordingly, she has imposed penalty on the respondent under Section 114(iii) of the Customs Act, 1962 - It is settled law that imposition of penalty is discretionary at the hands of the adjudicating authority - no interference required - appeal dismissed - decided against Revenue.

Summary

Issues:
- Appeal against Order-in-Original No. 03/NS/ADV(V)/DRI/BAG/2005
- Imposition of penalty under Section 114(iii) of the Customs Act, 1962
- Enhancement of penalty requested by the Revenue
- Confiscation of goods already exported
- Applicability of penalty under Section 117 as a residuary provision

Analysis:
The appeal was filed by the Revenue against Order-in-Original No. 03/NS/ADV(V)/DRI/BAG/2005, dated 21-4-2005, passed by the Additional Director General (Vigilance), Mumbai. Despite the absence of any representation from the respondent, the appeal was taken up for disposal. The learned Authorised Representative argued that the penalty imposed was insufficient given the amount of drawback sanctioned to the respondent, urging the Tribunal to enhance the penalty based on a previous case where a higher penalty was imposed by the same adjudicating authority. The adjudicating authority had imposed a penalty on the respondent under Section 114(iii) of the Customs Act, 1962, holding the goods liable for confiscation but unable to confiscate them as they had already been exported. The authority imposed a redemption fine instead of confiscation, citing the absence of penal provisions in Sections 74 and 75 of the Customs Act, 1962, and invoking Section 114(iii) as a residuary provision for imposing the penalty.

Upon review of the submissions made by the learned Authorised Representative and the records, the Tribunal found that the imposition of penalty is discretionary at the hands of the adjudicating authority. The Tribunal upheld the impugned order as correct, legal, and in need of no interference, deeming the appeal devoid of merits. Consequently, the appeal was rejected, and the operative part was pronounced in court.