2013 (8) TMI 730 - AT - Customs

Reduction of redemption fine and penalty - held that - It is an established fact on record that the machine imported enjoying customs benefit was utilized for job work which has hampered interest of Revenue - such a use is not possible without human intervention and object or motive is imputed to that. Therefore, the mild fine of Rs.2.00 Lakhs imposed in adjudication does not call for interference. - decided against the assessee.

Summary

Issues involved: Reduction of redemption fine and penalty, imposition of penalties on different individuals, utilization of imported machine for job work affecting revenue, exoneration from penal consequences.

Analysis:
1. Reduction of Redemption Fine and Penalty: The appellant's counsel pleaded for a reduction in the redemption fine and penalties imposed on all three appellants. The company faced a redemption fine of Rs.2.00 Lakhs and penalties of Rs.2.00 Lakhs. One director faced a penalty of Rs.50,000, and the authorized signatory faced a penalty of Rs.25,000. The counsel argued that since the duty element was not contested, the appellants should be exonerated from the penal consequences of the law. However, the tribunal did not accept this argument.

2. Utilization of Imported Machine for Job Work: The tribunal examined the facts on record, particularly para No.19.5, which highlighted that the machine imported with customs benefits was used for job work, impacting the revenue. The tribunal acknowledged that such utilization required human intervention and indicated an object or motive behind it. Consequently, the mild fine of Rs.2.00 Lakhs imposed during adjudication was deemed justified, as the use of the machine had adverse effects on revenue.

3. Imposition of Penalties on Individuals: The tribunal upheld the penalty imposed on one director, Shri. S.P. Sachdeva, as there was no substantial reason to absolve him from the penalty levied during adjudication. However, the penalty of Rs.25,000 imposed on the authorized signatory, Shri Naveen Joshi, was considered to lack a solid foundation. Therefore, the tribunal waived the penalty imposed on Shri Naveen Joshi.

4. Judgment Outcome: The tribunal dismissed the appeals of Scope Apparel Pvt. Ltd. and Shri Sachdeva but allowed the appeal of Shri Naveen Joshi. This decision was based on the specific circumstances and evidence presented during the proceedings. The judgment was dictated and pronounced in open court, providing a clear resolution to the issues raised during the case.