2010 (4) TMI 491 - AT - Customs

Penalty - The respondents herein imported Yoghurt , was found to be completely spoiled. Goods absolutely confiscated. Accepted that Yoghurt got spoilt due to entry of sea water during voyage. Held that - Assessee cannot be held guilty of any act or omission rendering goods liable to confiscation. Importers further have borne out cost towards destruction of spoil consignment. Penalty not imposable.

Summary

The Appellate Tribunal CESTAT, Chennai upheld the decision to set aside a penalty of Rs. 60,000 imposed on importers for importing spoiled 'Yoghurt' from Spain. The Tribunal ruled that the importers were not at fault as the spoilage occurred due to sea water entry during the voyage, and they had borne the cost of destroying the consignment. The appeal by the Revenue was rejected.