2016 (7) TMI 414 - AT - Customs

Levy of penalty - less declaration of import goods in the Import General Manifest (IGM) initially - later included in the gross weight by the way of amendment import of Slack Wax - Held that - Correcting the IGM is an afterthought which has to be viewed seriously based on the nature of the Cargo and nature of the amendment sought for. The adjudicating officer has discussed the issue in detail and given his finding at para-10 of the order on applicability of Section 30(1) of the Customs Act, 1962 and Board s Circular No.13/2005-Cus. dt. 11.03.2005. - Levy of penalty confirmed.

Summary

Issues:
1. Penalty under Section 30 of the Customs Act for amendment in Import General Manifest (IGM) regarding imported Slack Wax.

Analysis:
The case involved an appeal against the imposition of a penalty under Section 30 of the Customs Act, 1962, on the appellant for requesting an amendment in the Import General Manifest (IGM) related to the import of "Slack Wax." The appellant initially declared a quantity of 192112 kgs, but later requested to amend it to 202990 kgs. The issue at hand was whether the appellant was liable for the penalty under Section 30 of the Customs Act. The Tribunal considered the nature of the cargo, the timing of the requested amendment, and the implications of the delayed filing of the correct IGM before the vessel's arrival. The adjudicating officer relied on Board Circular No. 13/2005-Cus. to classify the change in quantity as a major amendment, emphasizing the importance of filing the correct IGM before the vessel's arrival to avoid penal action.

The Tribunal noted that the delayed filing of the IGM by the agent, requesting the quantity amendment after the vessel's entry, attracted penal action under Section 30(1) of the Customs Act. The appellant's argument that the cargo clearance was under RMS self-assessment did not absolve them of the penalty liability. The Tribunal upheld the Commissioner (Appeals)'s decision, emphasizing the seriousness of correcting the IGM as an afterthought and the implications on import duty if the initial declaration was accepted without the subsequent amendment. The Tribunal found no infirmity in the order and dismissed the appeal, affirming the penalty imposition under Section 30(1) of the Customs Act.

In conclusion, the Tribunal upheld the penalty under Section 30 of the Customs Act on the appellant for the delayed amendment in the Import General Manifest related to the imported Slack Wax. The decision highlighted the importance of timely and accurate filing of the IGM before the vessel's arrival to avoid penal consequences, especially in cases involving major amendments like changes in quantity/weight. The case serves as a reminder of the legal obligations and consequences associated with customs declarations and amendments, emphasizing compliance with regulatory requirements to avoid penalties and uphold the integrity of import processes.