2024 (9) TMI 469 - AT - Customs

Reduction of redemption fine and penalty - Importation of Green Peas and Yellow Peas - imports made during the period 22.10.2018 to 28.12.2018 - challenge to notification extending the restriction up to 31.12.2018 - HELD THAT - In this case the Ld. Authorized Representative has relied on the decision of this Tribunal in the case of M/S SHRI AMMAN DHALL MILL VERSUS THE COMMISSIONER OF CUSTOMS 2021 (1) TMI 1110 - KERALA HIGH COURT . In the said case the appellant did not challenge the notification and imports took place on 23.06.2020 which was almost two years of the operation of the N/N. 37/2015-2020 dated 28.09.2018. This Tribunal held that the redemption fine with penalty imposed by the Adjudicating Authority is correct. But in this case the appellant has challenged the notification and after litigation initially the operation of the notification was stayed by the Hon ble High Court of Rajasthan and thereafter the validity of the notification was upheld by the Hon ble Apex Court in the case of UNION OF INDIA AND OTHERS VERSUS AGRICAS LLP AND OTHERS ETC. 2020 (8) TMI 705 - SUPREME COURT . In the impugned order also the Ld. Commissioner (Appeal) has considered the submission made by the Respondent and proceeded to hold that redemption of final penalty are on higher side and reduced the redemption from penalty. But it is found that although Ld. Commissioner (Appeal) has reduced the redemption fine and penalty but in the facts and circumstances of the case as appellant being regular importer and as the earlier notification made the restrictions only up to 30.06.2018 which was extended by notification dated 28.09.2018 which means that there is a gap of three months wherein restriction was not in operation for import of green peas. In that circumstances the appellant has imported the goods from the foreign suppliers which were landed after extending restrictions. Further the respondent approached the Hon ble High Court and challenged the extention of restriction which was stayed by the Hon ble High Court in that circumstances although the goods are restricted as held by the Hon ble Apex Court but for imposing redemption fine and penalty a sympathetic view is to be taken. The appeal filed by the Revenue and the cross objection filed by the Respondent are disposed of.

Summary

Issues:
Importation of Green Peas and Yellow Peas, Reduction of redemption fine and penalty, Challenge to notifications restricting imports, Validity of impugned notifications, Confiscation under Customs Act, Adjudication procedure and imposition of fine and penalty.

Analysis:

The judgment involves an appeal by the Revenue against an order reducing the redemption fine and penalty imposed on the Respondent. The Respondent had also filed a cross objection seeking further reduction in the fine and penalty amount. The case pertains to the importation of Green Peas and Yellow Peas, which were initially categorized as free but later restricted through various notifications. The Respondent challenged these notifications, leading to detention of imported goods and subsequent legal proceedings.

The High Court of Rajasthan passed an interim order staying the operation of certain notifications, allowing the release of imported goods. However, other High Courts upheld the validity of the impugned notifications. The Supreme Court's judgment in a related case confirmed the restrictions on importation, making the imported goods liable for confiscation under the Customs Act. Subsequently, the Respondent received a Show Cause Notice, leading to an adjudication process where redemption fine and penalty were imposed.

The Authorized Representative for the Revenue argued that the Adjudicating Authority's order should be upheld, citing a previous Tribunal decision. On the other hand, the Respondent contended that due to detention, demurrage charges, and legal battles, the redemption fine and penalty should be reduced. The Tribunal considered these arguments and previous legal precedents.

The Tribunal noted that while a previous case upheld the fine and penalty due to delayed challenges to notifications, in this instance, the Respondent actively challenged the notifications. Given the circumstances, including the temporary stay by the High Court and the subsequent Supreme Court decision, a sympathetic view was taken. Consequently, the Tribunal reduced the redemption fine and penalty to Rs. 25,00,000/- each, considering the Respondent's status as a regular importer and the temporary gap in restrictions.

In conclusion, the appeal by the Revenue and the cross objection by the Respondent were disposed of with the modified imposition of redemption fine and penalty. The judgment highlights the complexities of import regulations, legal challenges to government notifications, and the balancing of enforcement with practical considerations in adjudication.