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2013 (8) TMI 414 - CGOVT - CustomsForeign Travel Tax (FTT) - Delay in Depositing the amount – The “Carrier” failed to deposit an amount of towards the FTT for the month of March, 2003 within the period as stipulated in Rule 9 of the FTT Rules, 1979 read with Notification No. 1/2002 and deposited the same after a delay of 2 days – The Applicant while denying all the charges submitted that there was no delay and if any it was not deliberate or intentional - Notice was issued as to why the amount should not be recovered from them towards interest in terms of Section 35A(1) of the Finance Act, 1979 read with Notification No. 3/94-FTT for depositing the said amount of FTT after a delay of 3 days and penal action under Section 38(3) of the Act for violating the provisions of Rule 4 of the FTT Rules, 1979 - Held that:- The applicant failed to deposit the full amount of tax collected into the account of the Central Govt. by due date, hence they were liable to penal action under Section 38(3) in addition to the payment of tax not so paid and the interest leviable - The only option with the adjudicating authority was the quantum of penalty to be imposed on the applicant which was to be within the range of minimum one-fifth of the tax not paid and maximum up to three times tax not paid as prescribed in the Section itself - The adjudicating officer had imposed the appropriate minimum penalty after considering all the facts, circumstances and submissions of the applicant as made - Therefore Commissioner (Appeals) has rightly upheld the imposition of said penalty. Applicant had deliberately contravened the provisions of Section 38(3) of Finance Act, 1979 (FTT) - For these contraventions, the applicant was now circumventing the basic truths and for these contraventions the department had very rightly imposed the minimum penalty as mandatorily prescribed in the Section itself – The conclusion of the Government finds support from the judgement MALAYSIAN AIRLINES Versus UNION OF INDIA [2010 (8) TMI 786 - BOMBAY HIGH COURT] – Decided against applicant.
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