2024 (1) TMI 593 - AT - Customs

Imposition of penalty - non-submission of the documents as per Regulation 5 of the Customs (Provisional Duty Assessment) Regulation, 2011 - HELD THAT - From the records it is seen that the appellant has imported coal through 8 (eight) Bills of Entry and the same were provisionally assessed for want of documents. The appellant has already submitted documents in respect of 7 (seven) Bills of Entry and the corresponding Bills of Entry were finally assessed. In respect of the remaining 1(one) Bill of Entry, there was a delay in submission of documents. Accordingly, the department has initiated proceedings for imposition of penalty under Regulation 5 of the said Regulations 2011. The appellant has already submitted the documents necessary for finalization of the provisional assessment while submitting their reply to the show cause notice. Thus, it is found that the penalty of Rs.5,000/- imposed by the Assistant Commissioner would be sufficient to meet the ends of justice. It is also found that the Commissioner(Appeals) has not given adequate reason for enhancing the penalty from Rs.5,000/- to Rs.50,000/-. In view of discussions, the enhanced penalty is not warranted in this case. Accordingly, the same is set aside. The enhanced penalty is set aside - the appeal filed by the appellant is allowed.

Summary

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

Details of the Judgment:

Issue 1: Imposition of Penalty
The Appellant imported coal through 8 Bills of Entry, provisionally assessed pending submission of documents. Documents for 7 Bills of Entry were submitted, but for 1 Bill of Entry, there was a delay. The department initiated penalty proceedings, imposing Rs.5,000 initially, enhanced to Rs.50,000 by Commissioner (Appeals), leading to this appeal.

Issue 2: Appellant's Submission
Appellant's Counsel argued that all documents were submitted with the reply to the show cause notice, citing precedents where reduced penalties were imposed for similar procedural lapses. They sought setting aside the enhanced penalty based on these arguments.

Issue 3: Revenue's Justification
Revenue's Authorized Representative contended that timely document submission is crucial for finalizing assessments and duty realization. Justifying the enhanced penalty, they emphasized the importance of adherence to stipulated timelines.

Analysis and Decision
After hearing both sides, the Tribunal noted the delay in document submission for one Bill of Entry. Considering precedents where nominal penalties were upheld for procedural delays without revenue implications, the Tribunal found the enhanced penalty unwarranted. Citing specific cases where penalties were not imposed due to delays without revenue impact, the Tribunal set aside the enhanced penalty, reverting to the initial Rs.5,000 penalty. The decision was based on the appellant's timely document submission and lack of justification for the penalty increase. Consequently, the appeal was allowed, and the enhanced penalty was overturned.

This summary captures the key issues, arguments, and the Tribunal's decision regarding the imposition of penalties for non-submission of documents in the mentioned legal judgment.