2024 (5) TMI 76 - AT - Customs

Levy of maximum Penalty - delay in submitting the documents for finalization of the Bills of Entry - Duty paid on provisional basis - HELD THAT - Admittedly the Department has not brought in any evidence to the effect that the Appellant has deliberately delayed the finalization of the Bills of Entry. On a query from the Bench, the Ld. Consultant submits that even in respect of the 12 Bills of Entry in question, the finalization has been completed and there is no pendency on their side. Therefore, following the ratio of the decision in the case of Jai Balaji Industries Ltd., 2021 (1) TMI 767 - CESTAT KOLKATA , I set aside the impugned Order and allow the Appeal.

Summary

Issues involved: Imposition of penalty on importer for delay in submitting documents for finalization of Bills of Entry.

The Appellant imported 34 consignments and paid Customs duty on provisional basis. Due to communication errors, they failed to submit requisite documents on time for 12 Bills of Entry, leading to a Show Cause Notice proposing penalty. The Adjudicating authority imposed a total penalty of Rs.20,000/- for all 12 Bills of Entry. The Department appealed to impose a penalty of Rs.50,000/- for each Bill of Entry, totaling Rs.6.00 Lakhs. The Appellant contended that the delay was due to inability to obtain documents on time from the overseas exporter, and the penalty imposed was reasonable considering no revenue implication. The Appellant cited precedents where penalties were reduced based on factual details. The Department supported the penalty imposed by the Ld. Commissioner(Appeals). The Tribunal noted the lack of evidence showing deliberate delay by the Appellant and cited a previous case where a nominal penalty was imposed for similar delays without revenue implications. Following this precedent, the Tribunal set aside the Ld. Commissioner(Appeals) order and allowed the Appeal.