2024 (3) TMI 367 - AT - Customs

Imposition of Penalty - remanding matter back to the original authority - delay in filing the bill of entry - EPCG Licence - import of Machinery as YIYOU MAKE HMI SCREW PRESS - MODEL EPC 1600 PRESS WITH PARTS AND ACCESSORIES 3 2 STATION DIE BOLSTER, TOOLING GRAPHITE LUBRICATION MACH - Benefit of Notification No. 16/2015-CUS - third container held at Mundra port due to excess weight in actual - HELD THAT - From the records, it is clear that there was no intention on the part of the appellant for delaying the taking of delivery from ICD, Ludhiana. The fact of the matter is that out of three containers mentioned (Supra) two containers reached earlier and one container was held up at Mundra port on account of excess weight which was subsequently resolved by according the permission to carry the third container to ICD, Ludhiana. Further, once the Ld. Commissioner has recorded the findings that there is no basis as apparent on record to impose the penalty then it was incumbent for the Ld. Commissioner to set aside the same and there was no reasons to remand the same to the original authority. Further, the remand order of the Ld. Commissioner (Appeals) has not been complied with by the original authority till date without any reason. Thus, there is no justifiable reasons for imposition of penalty and to this extent upheld the order of the Ld. Commissioner (Appeals) and to set aside the impugned order to the extent of remanding the matter back to the original authority. The appeal is accordingly, allowed on above terms.

Summary

Issues involved:
The judgment involves the imposition of a penalty on the appellant for delay in filing a bill of entry, the remand of the case by the Commissioner (Appeals) back to the original authority, and the subsequent appeal filed by the appellant against the remand order.

Imposition of Penalty:
The appellant, engaged in the manufacture of Rough/Machined Forgings, procured an EPCG license for importing machinery. Upon arrival at Mundra Port, one container was held due to excess weight, causing a delay. The Commissioner (Appeals) set aside the penalty of Rs. 12,15,000 imposed on the appellant, citing lack of a speaking order and violation of natural justice principles. The original authority failed to comply with the remand order, leading to the appeal.

Remand Order and Appeal:
The Commissioner (Appeals) remanded the case back to the original authority despite setting aside the penalty. The appellant contended that there was no basis for remand once the penalty was revoked. The appellant argued that there was no intention to delay, as the delay was due to the third container being held at Mundra Port. The Assistant Commissioner reiterated the penalty was due to the delay in filing the bill of entry, generated by the system. The Assistant Commissioner found no justification for the penalty and upheld the Commissioner (Appeals) order, setting aside the remand and allowing the appeal.