2019 (10) TMI 1422 - AT - Customs

Levy of penalty u/s 114A of Customs Act - non imposition of penalty on respondent M/s Saraswati Impex under Section 114A in relation to import vide Bill of Entry No. 2404237 - HELD THAT - There is error in the impugned order, so far as penalty not imposed under Section 114A with respect to goods import under Bill of Entry No. 2404237. Accordingly, we impose the penalty of ₹ 30,24,833/- under Section 114A of the Customs Act with respect to goods imported under Bill of Entry No. 2404237. Appeal allowed.

Summary

Issues:
Revenue's appeal against the impugned order-in-original dated 22.10.2018.

Analysis:
1. Service of Notice: The Tribunal directed the notice to be served on the respondent through various means, including affixing and email, due to issues with the address. The respondent failed to appear, leading to the appeal being heard with the assistance of the Revenue's Authorized Representative.

2. Examination and Mis-declaration: The case involved the examination of goods imported by the respondent, where discrepancies were found between the declared width and actual width of fabric rolls. Further investigation revealed mis-declaration in the description of goods imported, leading to detention and seizure under Section 110 of the Act.

3. Valuation and Investigation: Overseas Customs Authorities were involved to ascertain the actual value of goods imported. Discrepancies were found in the declared values by the importers, indicating an attempt to evade customs duty. Statements and investigations revealed mis-declaration by the importers, leading to the rejection of declared values and potential confiscation of goods.

4. Show Cause Notices: Show cause notices were issued to the importers, proposing reclassification of goods, rejection of declared values, and imposition of differential duties and penalties. The notices detailed the discrepancies found in the import declarations and proposed actions to be taken against the importers.

5. Role of Shipping Line: The involvement of the shipping line in the case was also examined. The shipping line submitted a reply to the show cause notice, denying involvement in the stuffing of containers and stating their role was limited to handling documentation provided by the shipper.

6. Ex-parte Order and Penalties: Despite opportunities for hearings, the importers failed to appear, leading to an ex-parte order confirming the proposals in the show cause notices. The order included confiscation of goods, imposition of penalties, and appropriation of deposited amounts, with specific penalties imposed on individuals and entities involved.

7. Appeal and Modification: The Revenue appealed against the non-imposition of a penalty on one of the importers under Section 114A. The Tribunal, upon review, found an error in the order and imposed the penalty as requested by the Revenue, thereby allowing the appeal and modifying the impugned order accordingly.