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2024 (3) TMI 1184 - AT - CustomsLevy of penalty for delay in submission of documents for two Bills of Entry, under regulation 5 of the Customs Provisional Duty Assessment) Regulations, 2011 - HELD THAT - From the records it is seen that the appellant has imported goods vide 31 Bills of Entry and there was a delay in submission of the documents only in respect of two Bills of Entry, for finalisation of the provisional assessments. Subsequently, they have submitted all the documents, in respect of the remaining two Bills of Entry also, and they have been finalised. As there was a delay in submission of documents in respect of two Bills of Entry, the Department initiated proceedings for imposition of penalty under Regulation 5 of the above said Regulations 2011. The adjudicating authority has imposed a penalty of Rs.20,000/- as the appellant has already submitted the documents in respect of the two Bills of Entry and they also have been finalised. The Appellant cited various decisions in support of their contention that reduced penalty can be imposed for such procedural violations - On perusal of decisions cited by the appellant in support of their contentions that the enhanced penalty is not sustainable in this case. In the case of M/S JAI BALAJI INDUSTRIES LTD. VERSUS COMMR. OF CUSTOMS (PREVENTIVE) , BHUBANESWAR 2021 (1) TMI 767 - CESTAT KOLKATA , this Tribunal has held The order of the Commissioner (Appeals) does not establish any ground for enhancing the penalty to the maximum of Rs. 50,000/- per Bill of Entry yet to be finalised. The present case on hand is squarely covered by the decisions cited above. The appellant has already submitted the documents necessary for finalization of the provisional assessment. Thus, the penalty of Rs.20,000/- imposed by the Assistant Commissioner would be sufficient to meet the ends of justice. It is also found that the Ld. Commissioner (Appeals) has not given adequate reason for enhancing the penalty from Rs.20,000/- to Rs.1,00,000/-. In view of discussions and the decisions cited above, the enhanced penalty is not warranted in this case. Accordingly, the same is set aside. The enhanced penalty set aside - appeal allowed.
Issues involved:
The imposition of penalty for non-submission of documents as per Regulation 5 of the Customs (Provisional Duty Assessment) Regulations, 2011. Comprehensive Details: Issue 1: Imposition of Penalty for Delay in Submission of Documents The appellant filed 31 Bills of Entry for imported goods but could not submit original documents within the stipulated time period as required by Customs Act, 1962. The penalty was initially imposed at Rs.20,000 for two Bills of Entry, which was enhanced to Rs.1,00,000 by the Commissioner (Appeals). The appellant argued that they eventually submitted all documents for finalization, citing precedents where reduced penalties were imposed for similar procedural lapses without revenue implications. Issue 2: Justification for Enhanced Penalty The Revenue justified the enhanced penalty by stating that timely submission of documents is crucial for finalizing provisional assessments and determining duty liability. The delay in document submission caused delays in assessment finalization, impacting revenue realization. However, the appellant contended that the enhanced penalty was not warranted as all documents were eventually submitted and finalization was completed for all Bills of Entry. Judgment: After considering the arguments and precedents cited, the Tribunal found that the appellant had submitted all necessary documents for finalizing the provisional assessment. The Tribunal noted that the penalty of Rs.20,000 imposed initially was sufficient, and the Commissioner (Appeals) did not provide adequate justification for enhancing the penalty to Rs.1,00,000. Therefore, the Tribunal set aside the enhanced penalty and allowed the appeal filed by the appellant.
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