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2024 (4) TMI 791 - AT - CustomsLevy of penalty u/s 114A - Classification of imported goods - duty demand - suppression of facts - import of Shell Flavex Oil 595 B/H - item being Plasticizer - classified by all Custom Houses under CTH 38122090 but DRI, Gandhidham classified under CTH 27079900 - HELD THAT:- We find that the case relates to classification of the imported goods, the appellant have classified the goods under CTH 38122090 on a bona fide belief that the imported goods were Plasticizer and the same were used as Plasticizer in the manufacture of the tyre. The compound Plasticizer is clearly mentioned in the tariff entry against CTH 38122090. Therefore, the bona fide belief of the appellant that the product being a plasticizer classifiable under CTH 38122090 cannot be doubted with. We further find that the appellant without contesting the duty liability paid the entire amount along with interest and seek relief only for waiver of penalty. We also observed that in all over India at all the Ports said goods was being classified and accepted under CTH 38122090 considering the same as plasticizer. Therefore, it is not only belief of the appellant but also the view of the department that the goods is classifiable under CTH 38122090. However, it could only be ascertained that the good is classified under CTH 27079900 after detailed analysis of the product. Therefore, penalty u/s 114A cannot be imposed. Thus, in our mind it is absolutely clear that non payment of duty on the part of the appellant is not by reason of suppression of fact, collusion or any willful misstatement. Therefore, the ingredients for imposing penalty u/s 114A are absent. Therefore, the penalty u/s 114A cannot be imposed. As per the discussion the duty demand along with interest and payment thereof are upheld and maintained. The penalty imposed u/s 114A is set aside. Accordingly, the appeal is allowed in above terms.
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