2017 (3) TMI 282 - AT - Customs

Permission for filing an appeal - redemption fine - penalty - Held that - During the relevant period, it was mandatory for the department to seek permission from the Committee on Disputes to file an appeal before the higher judicial forum - The COD very clearly recorded that there are no legal issues involved in the dispute in the case of the impugned order and the Committee held that it was not desirable for the Revenue authorities as well as Mazagon Docks Ltd. to litigate the matter in a court of law and gave direction to the department not to impose any further penalty on MDL or insist on confiscation of the goods - appeal rejected - decided against Revenue.

Summary

Issues: Appeal against order-in-original regarding imposition of redemption fine and value enhancement of imported goods.

Imposition of Redemption Fine:
The appeal was filed by the Revenue against an order-in-original dated 31.10.2005, primarily challenging the absence of a redemption fine on confiscated goods and the adjudicating authority's 2.677% enhancement of the imported goods' value. The departmental representative argued for striking down or modifying the order, emphasizing the need for a redemption fine. However, the respondent's counsel highlighted that both the Revenue and the respondent had previously sought permission from the Committee on Disputes for appealing against the same order-in-original. The Committee, in its meeting on 21.8.2007, explicitly stated that there were no legal issues in the dispute and directed against further penalties or confiscation of goods. Consequently, the Tribunal, after reviewing the submissions from both sides and the Committee's decision, rejected the Revenue's appeal, aligning with the Committee's directive.

Value Enhancement of Imported Goods:
The appeal also contested the adjudicating authority's failure to enhance the imported goods' value by 15%, settling for a 2.677% increment instead. Despite the Revenue's plea for a more substantial increase, the Tribunal's decision to reject the appeal encompassed this aspect as well. The Tribunal's rejection was based on the Committee on Disputes' clear directive to avoid litigation and additional penalties on the respondent, leading to the dismissal of the Revenue's appeal against the order-in-original. The Tribunal's decision was in line with the Committee's stance, emphasizing the lack of legal issues in the dispute and discouraging further legal action or penalties against the respondent.