2017 (9) TMI 134 - AT - Customs

Confiscation - smuggling - Cigarettes - redemption fine - penalty - case of appellant is that the investigation/inquiry on the smuggling of cigarettes is still pending and it is premature to conclude the issues raised by the Revenue - Held that - the ld. Commissioner (Appeals) even though recorded that the inquiry relating to smuggling of cigarettes is still pending, but, proceeded to decide the issue on merit and later remanded the matter to the adjudicating authority to consider the confiscation of goods with appropriate redemption fine and imposition of penalty. This observation of the ld. Commissioner (Appeals), cannot be sustained, as it suffers from self contradiction and also premature - the inquiry by the DRI relating to the smuggling of cigarettes is on the last stage of completion and therefore, it is appropriate to direct the adjudicating authority to consider all issues relating to the allegation against the appellant, after completion of inquiry by the DRI on the issue of smuggling of cigarettes - appeal allowed by way of remand.

Summary

Issues: Appeal against order of Commissioner (Appeals) of Customs, Ahmedabad for confiscation of imported goods, penalty imposition, and remand for consideration of redemption fine and penalty.

The judgment deals with an appeal filed against an order passed by the Commissioner (Appeals) of Customs, Ahmedabad, proposing confiscation of imported goods and penalty imposition. The show cause notice was issued based on an investigation, and the proceedings against the appellant and co-noticees were initially dropped but later revived by the Commissioner (Appeals). The Revenue appealed against the dropping of proceedings, leading to the present appeal. The appellant argued that the Commissioner (Appeals) contradicted himself by confirming the allegations in the show cause notice against the appellant and directing penalties on co-noticees without the Revenue filing an appeal against them. The High Court quashed the order against other appellants, and a writ petition was filed to restrain further adjudication, which was stayed by the High Court. The Revenue confirmed that the inquiry into smuggling of cigarettes is still pending. The Tribunal found the Commissioner (Appeals) premature in deciding the issue on merit and remanded the matter to the adjudicating authority for reconsideration after the completion of the inquiry by the DRI. The appeal was allowed by way of remand, setting aside the impugned order for fresh consideration on merit post the completion of the DRI inquiry.