M/S. Visteon Automotive Systems India Ltd. Vs. Commissioner of Customs, Chennai - Court Judgment

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CourtCustoms Excise and Service Tax Appellate Tribunal CESTAT Chennai
Decided OnNov-11-2009
Case NumberAppeal No. C/257 of 2003
Judge THE HONOURABLE DR. CHITTARANJAN SATAPATHY, TECHNICAL MEMBER & THE HONOURABLE MR. P.K. DAS, JUDICIAL MEMBER
AppellantM/S. Visteon Automotive Systems India Ltd.
RespondentCommissioner of Customs, Chennai
Advocates:Shri S. Muthuvenkataraman, Advocate for the Appellants. Shri C.Rangaraju, SDR for the Respondent
Excerpt:
per dr. chittaranjan satapathy heard both sides. this case is where the appellants imported the impugned goods during february 1999 to april 2000. afterwards they discovered that some of the goods imported have not been reflected in the bills of entry filed by them and no duty has been paid on the same. on such discovery, the appellants intimated the jurisdictional chief commissioner vide letter dated 11.10.2000 the non-inclusion of the imported items and non-payment of duty and voluntarily paid the duty thereon along with the interest. thereafter a show-cause notice has been issued by the department which has been adjudicated under the impugned order. while appropriating the duty amount of rs.54,37,268/- along with interest, the adjudicating commissioner has imposed a redemption fine of rs. 3 lakhs and has also imposed a penalty of rs. 13,59,370/- under section 114a of the customs act, 1962. 2. the learned counsel appearing for the appellants states that taking into account the voluntary payment made by the appellants and voluntary disclosure made by them on their own without any prior detection by the department, the provisions of section 114a of the customs act is not applicable in this case as there was no intention to evade duty nor any deliberate suppression, mis-statement etc. he also states that in few other cases adjudicated by the additional commissioners and the commissioner relating to such voluntary disclosure were made they have imposed nominal redemption fine and lesser penalties under section 112a of the customs act, 1962. 3. heard the learned sdr. 4. keeping in view the facts and circumstances of the case, we are of the opinion that penal provision under section 114a of the customs act, 1962 is not attracted in this case as the appellants themselves have come forward with voluntary disclosure and have paid the duty and interest in respect of the impugned goods omitted from the bills of entry filed by them. we also find that the show-cause notice had invoked the provisions of section 112a along with section 114a for penal action. in a similar case the commissioner of customs, trichy vide his order dated 28.3.2001 has imposed redemption fine of rs.2.50 lakhs and imposed a penalty of rs.50,000/- under section 112a of the customs act in a case involving duty amount of rs.36,38,536/-. the learned counsel fairly states that the appellants, to the best of his knowledge, have not appealed against the said order passed by the commissioner of customs, trichy dated 28.3.2001. we are of the view that in the light of the uncontested order passed by the commissioner of customs, trichy, the redemption fine of rs. 3 lakhs imposed in this case requires to be confirmed. we order accordingly. however, as regards the penalty, we set aside the penalty imposed under section 114a of the customs act, 1962 and direct that a penalty of rs.1,00,000/- (rupees one lakh only) be imposed on the appellants under section 112a of the customs act, 1962. the appeal is otherwise rejected.
Judgment:

Per Dr. Chittaranjan Satapathy

Heard both sides. This case is where the appellants imported the impugned goods during February 1999 to April 2000. Afterwards they discovered that some of the goods imported have not been reflected in the Bills of Entry filed by them and no duty has been paid on the same. On such discovery, the appellants intimated the jurisdictional Chief Commissioner vide letter dated 11.10.2000 the non-inclusion of the imported items and non-payment of duty and voluntarily paid the duty thereon along with the interest. Thereafter a show-cause notice has been issued by the Department which has been adjudicated under the impugned order. While appropriating the duty amount of Rs.54,37,268/- along with interest, the adjudicating Commissioner has imposed a redemption fine of Rs. 3 lakhs and has also imposed a penalty of Rs. 13,59,370/- under Section 114A of the Customs Act, 1962.

2. The learned counsel appearing for the appellants states that taking into account the voluntary payment made by the appellants and voluntary disclosure made by them on their own without any prior detection by the Department, the provisions of Section 114A of the Customs Act is not applicable in this case as there was no intention to evade duty nor any deliberate suppression, mis-statement etc. He also states that in few other cases adjudicated by the Additional Commissioners and the Commissioner relating to such voluntary disclosure were made they have imposed nominal redemption fine and lesser penalties under Section 112A of the Customs Act, 1962.

3. Heard the learned SDR.

4. Keeping in view the facts and circumstances of the case, we are of the opinion that penal provision under Section 114A of the Customs Act, 1962 is not attracted in this case as the appellants themselves have come forward with voluntary disclosure and have paid the duty and interest in respect of the impugned goods omitted from the Bills of Entry filed by them. We also find that the show-cause notice had invoked the provisions of Section 112A along with Section 114A for penal action. In a similar case the Commissioner of Customs, Trichy vide his order dated 28.3.2001 has imposed redemption fine of Rs.2.50 lakhs and imposed a penalty of Rs.50,000/- under Section 112A of the Customs Act in a case involving duty amount of Rs.36,38,536/-. The learned counsel fairly states that the appellants, to the best of his knowledge, have not appealed against the said order passed by the Commissioner of Customs, Trichy dated 28.3.2001. We are of the view that in the light of the uncontested order passed by the Commissioner of Customs, Trichy, the redemption fine of Rs. 3 lakhs imposed in this case requires to be confirmed. We order accordingly. However, as regards the penalty, we set aside the penalty imposed under Section 114A of the Customs Act, 1962 and direct that a penalty of Rs.1,00,000/- (Rupees one lakh only) be imposed on the appellants under Section 112A of the Customs Act, 1962. The appeal is otherwise rejected.