2024 (1) TMI 473 - AT - Customs

Seeking enhancement of penalty - non-submission of documents within the stipulated time - Regulation 5 of the Customs (Provisional Duty Assessment) Regulation, 2011 - HELD THAT - The appellant has already submitted the documents necessary for finalization of the provisional assessment while submitting their reply to the show cause notice. Thus, the penalty of Rs.5,000/-(Rupees Five Thousand only) imposed by the Assistant Commissioner would be sufficient to meet the ends of justice. Also, the Commissioner(Appeals) has not given adequate reason for enhancing the penalty from Rs.5,000/- to Rs.50,000/- on each Bill of Entry. In view of discussions and the decisions cited above, the enhance penalty is not warranted in this case. Accordingly, the same is set aside. Appeal allowed.

Summary

Issues Involved: Imposition of penalty for non-submission of documents under Regulation 5 of the Customs (Provisional Duty Assessment) Regulation, 2011.

Summary:
1. The appellant imported coal through 10 Bills of Entry, provisionally assessed pending submission of documents. Documents for 6 Bills of Entry were submitted, while 4 Bills of Entry faced delay. Penalty of Rs.5,000/- per Bill of Entry imposed by Assistant Commissioner, increased to Rs.50,000/- by Commissioner (Appeals).

2. Appellant argued that they submitted all documents with the reply to the show cause notice, citing precedents for reduced penalties for procedural lapses. Revenue contended that timely document submission is crucial for finalizing assessments and duty realization.

3. The Tribunal found that the appellant had submitted necessary documents for finalization with the reply to the notice. Citing relevant precedents, the Tribunal set aside the enhanced penalty, stating that the penalty imposed by the Assistant Commissioner was sufficient to meet the ends of justice.

4. The Tribunal concluded that the enhanced penalty was not warranted in this case, setting it aside and allowing the appeal filed by the appellant.