2020 (5) TMI 643 - AT - Customs

Imposition of Redemption Fine and Penalty - non-submission of installation certificate within 6 months and further extension of time not sought from the Customs - violation of conditions of the N/N. 97/2004 - HELD THAT - Admittedly, in the present case, the appellant has violated the conditions of the notification no.97/2004 dt. 17/09/2004. Further, the imported goods were not installed within 6 months and no application for extension of time was submitted to the Customs as per the condition of the notification. Further, the Commissioner (Appeals) after considering all the submissions of the appellant has come to the conclusion that the appellant has violated the condition of the Notification No.97/2004 and consequently has imposed redemption fine of ₹ 50,000/- and penalty of ₹ 5000/- on the appellant under Section 112(a) of the Customs Act, 1962. Thus, there are no infirmity in the imposition of redemption fine and penalty in the facts and circumstances of the case since the appellant has not complied with the conditions of the notification No.97/2004 dt. 17/09/2004 - appeal dismissed - decided against appellant.

Summary

Issues:
Violation of conditions of Notification No.97/2004 regarding installation certificate and extension of time, Imposition of redemption fine and penalty under Section 112(a) of the Customs Act, 1962.

Analysis:
The appeal was against the Commissioner of Customs' order confiscating goods under Section 111(o) of the Customs Act, 1962, allowing redemption on payment of fine and imposing a penalty. The appellant failed to submit an installation certificate or apply for an extension of time after 6 months from import. The Commissioner found the goods worth ?25,41,411/- were not installed within the prescribed period but allowed redemption on payment of ?50,000/-. The appellant argued that they held EPCG licenses for concessional duty, goods were eventually installed, and penalties were unjustified. The AR contended that the appellant violated Notification No.97/2004 by not submitting the certificate or seeking an extension, justifying the fine and penalty.

The Tribunal observed the appellant indeed breached the conditions of Notification No.97/2004 by not installing goods within 6 months or seeking an extension. The Commissioner(Appeals) upheld the redemption fine and penalty under Section 112(a) of the Customs Act, 1962, as the appellant failed to comply with the notification's terms. The Tribunal found no fault in the imposition of the fine and penalty, given the non-compliance with the notification. Consequently, the appeal was dismissed, affirming the impugned order.

This detailed analysis highlights the core issues of violating notification conditions, imposition of fines and penalties under the Customs Act, and the Tribunal's decision to uphold the Commissioner's order based on non-compliance with statutory requirements.