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2019 (8) TMI 1384 - AT - CustomsImposition of penalty u/s 117 of Customs duty - it was alleged that the FOB value declared by the appellant is lesser than the PMV value resulting into excess claim of DEPB, assessment was finalized - HELD THAT - While finalizing the assessment of the export goods the adjudicating authority has accepted the FOB value as declared by the appellant and allowed the DEPB benefit accordingly. Therefore, imposition of penalty under Section 117 of the Customs Act, 1962 is unwarranted. The penalty is set aside - Appeal allowed.
Issues: Assessment of DEPB benefit based on declared FOB value, Imposition of penalty under Section 117 of the Customs Act, 1962
Assessment of DEPB benefit based on declared FOB value: The appeal was filed against an Order-in-Appeal passed by the Commissioner of Customs (Appeals), Mumbai-III. The appellant had filed 14 shipping bills declaring the FOB value of the products, which was accepted by the adjudicating authority for finalizing the assessment and allowing the DEPB benefit. The appellant argued that since the FOB value was accepted, the imposition of a penalty under Section 117 of the Customs Act, 1962 was unjustified. The Tribunal agreed with the appellant, stating that the imposition of the penalty was unwarranted given that the FOB value was accepted for DEPB benefit. Consequently, the penalty was set aside, and the appeal was allowed with any consequential relief as per the law. Imposition of penalty under Section 117 of the Customs Act, 1962: The adjudicating authority had imposed a penalty of &8377; 1,40,000 under Section 117 of the Customs Act, 1962 for misdeclaration of the PMV, despite accepting the FOB value for DEPB benefit. The appellant argued that the penalty was contradictory and excessive, as the maximum penalty mentioned by the Commissioner (Appeals) was &8377; 1.00 lakh. The Tribunal noted the contradiction and chose to set aside the penalty, allowing the appeal and any consequential relief as per the law. In conclusion, the Tribunal ruled in favor of the appellant, setting aside the penalty imposed under Section 117 of the Customs Act, 1962, as the FOB value was accepted for DEPB benefit. The judgment highlighted the inconsistency in the penalty amount and provided relief to the appellant in accordance with the law.
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