2015 (10) TMI 495 - AT - Customs

Improper importation of goods Purchase of POY without payment Demand of Duty Goods of Assesse were seized by Customs Officer and after thorough investigation, it was found that assesse was indulged in purchase of POY without payment of customs duty, without cover of proper document Show cause notice was issued proposing to confiscate seized goods and to demand customs duty Held that - Assesse had not placed any documents that they received goods from brokers except statements So confiscation of seized goods was justified and consequent demand of duty on provisional release of goods was liable to be upheld Authorised Signatory of M/s Shabnam stated that they have cleared quantity of 7200 imported POY to assesse without payment of duty Hence, confiscation of goods and demand of duty were also liable to be upheld There was no material available to impose penalty on brokers as they had no knowledge that goods were liable for confiscation Taking into account overall facts and circumstances, Director and partner of Assesse-company and M/s Shabnam required to be waived Demand of duty upheld except demand of Anti Dumping Duty Confiscation of goods upheld and redemption fine reduced Decided against Assesses.

Summary

Issues:
1. Confiscation of imported goods without payment of customs duty.
2. Demand of customs duty and penalty on the involved parties.
3. Imposition of penalty on directors, employees, brokers, and partners.
4. Confiscation of goods under Section 111(d) of the Customs Act.
5. Demand of Anti Dumping Duty and interest.
6. Validity of the penalties imposed on the parties involved.

Confiscation of Imported Goods without Payment of Customs Duty:
The case involved the confiscation of imported Polyester Yarn (POY) by Customs officers from a manufacturing company, M/s Shailja, for receiving goods without proper documents or payment of duty. The seized goods were released provisionally, leading to a show cause notice for confiscation and duty demand. The Adjudicating Authority confirmed the confiscation and imposed penalties on various individuals and entities involved.

Demand of Customs Duty and Penalty:
The Adjudicating Authority confirmed the demand of customs duty on the imported POY and imposed penalties under Section 112 of the Customs Act on M/s Shailja, M/s Shabnam, directors, employees, and brokers. The penalties were based on the duty amounts and roles of the individuals in the procurement of goods without payment of duty.

Imposition of Penalty on Directors, Employees, Brokers, and Partners:
The case involved arguments regarding the imposition of penalties on directors, employees, brokers, and partners of the companies. The legal representatives contended that penalties were not sustainable due to lack of knowledge or proper evidence. Various legal precedents were cited to support the arguments against the penalties imposed on the individuals.

Confiscation of Goods under Section 111(d) of the Customs Act:
The Tribunal upheld the confiscation of goods under Section 111(d) of the Customs Act due to the lack of proper documentation and contravention of customs regulations by M/s Shailja. The confiscation was deemed warranted based on the violation of statutory provisions.

Demand of Anti Dumping Duty and Interest:
The case involved a demand for Anti Dumping Duty and interest on the parties involved in the procurement of goods without payment of duty. The Tribunal examined the quantification of the duty demand and upheld the interest charges under the Customs Act.

Validity of Penalties Imposed on the Parties Involved:
The Tribunal reviewed the penalties imposed on M/s Shailja, M/s Shabnam, directors, employees, brokers, and partners. After considering the facts and circumstances of the case, the penalties were reduced for M/s Shailja and M/s Shabnam. The Tribunal also waived penalties on certain individuals based on their lack of knowledge regarding the confiscation of goods.

This detailed analysis of the legal judgment addresses the issues of confiscation of imported goods, demand of customs duty and penalties, imposition of penalties on various individuals, confiscation under the Customs Act, demand of Anti Dumping Duty and interest, and the validity of penalties imposed on the involved parties. The Tribunal's decision reflects a thorough examination of the facts, legal arguments presented, and relevant precedents to reach a just conclusion in the case.