indo Burma Trading Corporation Vs. Commissioner of Customs - Court Judgment |
| Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai |
| Oct-09-2000 |
| (2001)(127)ELT166Tri(Mum.)bai |
| indo Burma Trading Corporation |
| Commissioner of Customs |
1. the applications are for waiver of deposit of penalties of rs. 3.50 lacs on indo burma trading company and rs. 35,000/- on omprakash khemka, its office superintendent.3. the penalties have been imposed under section 114 of the act on the finding of the commissioner that the toothpaste exported by the applicant was highly over valued. prima facie the provisions of section 114 of the act will not apply in case of export goods which are not dutiable or prohibited, as is the case of the toothpaste. further, the commissioner himself agrees in his order that there was no undue benefit to be obtained by over valuing the goods; the applicant company had not availed of the deec scheme, or other such benefits, and the goods were not exported under the claim of drawback. in these circumstances, where there is no wrongful gain at anybody's advantage, we do not prima facie see justification for any penalty, even assuming that penalty was imposable. accordingly, we waive deposit of the penalties imposed and stay their recovery.
1. The applications are for waiver of deposit of penalties of Rs. 3.50 lacs on Indo Burma Trading Company and Rs. 35,000/- on Omprakash Khemka, its office Superintendent.
3. The penalties have been imposed under Section 114 of the Act on the finding of the Commissioner that the toothpaste exported by the applicant was highly over valued. Prima facie the provisions of Section 114 of the Act will not apply in case of export goods which are not dutiable or prohibited, as is the case of the toothpaste. Further, the Commissioner himself agrees in his order that there was no undue benefit to be obtained by over valuing the goods; The applicant company had not availed of the DEEC Scheme, or other such benefits, and the goods were not exported under the claim of drawback. In these circumstances, where there is no wrongful gain at anybody's advantage, we do not prima facie see justification for any penalty, even assuming that penalty was imposable. Accordingly, we waive deposit of the penalties imposed and stay their recovery.