9911796707
|
Home
Issues:
Importation of old and used cloth for charitable purposes under Notification No. 85/82 - Imposition of penalty - Justification of penalty reduction by Commissioner (Appeals). Detailed Analysis: 1. Importation of Old Cloth for Charitable Purposes: The appellants imported old and used cloth, claiming it was for distribution among the poor and needy under Notification No. 85/82. However, investigation revealed discrepancies in their charitable activities, leading to the withdrawal of the certificate by the Deputy Commissioner, Gurgaon. The appellants failed to provide evidence of their charitable trust's legitimacy and the distribution of cloth without discrimination. The charges against them were upheld, indicating a lack of compliance with the notification requirements. 2. Imposition of Penalty: The appellants argued that they subsequently obtained the required certificate and believed in good faith that importing and distributing cloth to the needy was permissible. The counsel contended that there was no justification for imposing a penalty and confirming the duty. However, the authorities highlighted that the appellants misrepresented their activities, falsely obtaining a certificate and engaging in fraudulent practices. The penalty of Rs. 75,000 on the CIF value of Rs. 6,72,200 was deemed appropriate due to the proven violations and fraudulent conduct. 3. Justification of Penalty Reduction: The Commissioner (Appeals) reduced the penalty from Rs. 1 lakh to Rs. 75,000, considering the circumstances. The appellants failed to demonstrate their charitable trust's registration and compliance with the notification requirements. The cancellation of the certificate by the Deputy Commissioner was deemed justified, indicating the seriousness of the violations. The authorities provided detailed reasons for the penalty imposition, emphasizing the fraudulent activities of the appellants and the need for enforcement measures. Despite the possibility of a higher penalty based on the goods' value, a lenient view was taken. The appellate tribunal upheld the penalty, rejecting the appeal and affirming the imposition as just and appropriate based on the established facts and legal provisions. In conclusion, the judgment by the Appellate Tribunal CEGAT, Chennai upheld the penalty imposed on the appellants for importing old cloth without meeting the charitable trust requirements under Notification No. 85/82. The decision emphasized the importance of compliance with regulations, the seriousness of fraudulent activities, and the justification for penalty imposition based on the established facts and legal provisions.
|
