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2021 (11) TMI 737 - AT - CustomsConfiscation - reduced quantum of redemption fine and penalty - want of IEC code for import of raw materials by the appellant for Railway Project, Government of India - HELD THAT - It is only a venial breach at the most, which is also for no fault of the appellant, as the appellant had made application for IEC number in proper time. The delay in grant of IEC number is wholly attributable to the Government of India , Department of Foreign Trade, Ministry of Commerce. Accordingly, the appellant had produced the IEC code before the Addl. Commissioner of Customs/Adjudicating Authority, before passing of the adjudication order and prayed for amendment in the bill of entry as per the provisions of Section 149 of the Customs Act. The order of confiscation is bad. Accordingly, the confiscation and redemption fine are set aside. The penalty imposed under Section 112(a) is reduced to ₹ 1,000/- - Appeal allowed - decided in favor of appellant.
Issues:
- Justification of confiscation, redemption fine, and penalty due to lack of IEC code for import of raw materials by the appellant for a Railway Project of the Government of India. Analysis: The main issue in this appeal before the Appellate Tribunal CESTAT NEW DELHI was whether the confiscation, redemption fine, and penalty imposed due to the absence of an Importer Exporter Code (IEC) for the import of raw materials by the appellant for a Railway Project of the Government of India were justified. The appellant had filed an Electronic Data Interchange (EDI) Bill of Entry without the IEC code for the imported goods, which were declared for a railway project. The goods were examined and found to be as per declaration. The appellant had applied for the IEC code before the arrival of goods, but the code was delayed beyond the appellant's control. Despite furnishing the IEC code later, the goods were confiscated and a penalty was imposed under the Customs Act. The Commissioner (Appeals) upheld the order of confiscation but reduced the redemption fine and penalty. The appellant contended that they had applied for an amendment in the Bill of Entry under Section 149 of the Act, which was not allowed, leading to a miscarriage of justice. The appellant argued that there was no misdeclaration or suppression of facts, and appropriate duty was paid for the goods. It was also highlighted that the delay in obtaining the IEC code was due to reasons beyond the appellant's control, specifically attributed to the Government of India, Department of Foreign Trade, Ministry of Commerce. Upon considering the arguments, the Tribunal found that the delay in obtaining the IEC code was not the fault of the appellant, as the application was made in a timely manner. The Tribunal held that the breach was minor and set aside the order of confiscation, along with the redemption fine. The penalty imposed under Section 112(a) of the Customs Act was reduced significantly. Consequently, the appeal was allowed, and the appellant was entitled to consequential benefits as per the law. The Tribunal's decision was based on the understanding that the delay in obtaining the IEC code was not attributable to any fault of the appellant, leading to the reversal of the confiscation and reduction of the penalty.
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