COMMISSIONER OF CUSTOMS Vs. TATA POWER COMPANY LTD.

JUDGEMENT

(1.) THE Revenue has preferred this appeal challenging the order passed by the Customs, Excise and Service Tax Appellate Tribunal (hereinafter referred to as "the Tribunal" for short) reducing the penalty from Rs. 59,77,432 to Rs. 5,00,000 only. The substantial question of law that arises for consideration in this appeal is,

(2.) THE facts are not in dispute. The assessee is an importer of furnace oil from M/s. Indian Oil Corporation Limited (hereinafter referred as "IOCL", for short). The Revenue authorities found 18 consignments of furnace oil imported through Mangalore and Karwar ports. The assessee has undervalued 14 consignments by misdeclaring the actual payments made to the IOCL by way of suppressing the facilitation charges, bank charges, demurrages and survey fees incurred on the imported goods. In respect of 12 bills of entry where assessment was final, short -levy was found to be Rs. 59,77,452. Therefore, after issuing notice to the assessee and after hearing him, the Commissioner of Customs passed Order -in -Original No. 1/2007 on February 9, 2007 redetermining the assessable value in respect of total imported goods, confirmed the demand, interest along with penalty and also ordered for confiscation of goods. Aggrieved by the said order, the assessee preferred an appeal to the Tribunal. The Tribunal modified the order passed by the Commissioner confirming the duty demand in respect of addition of all the charges, directed the amount already paid to be adjusted and upheld the finding that the goods covered under 12 bills of entry as detailed in part I are liable for confiscation under section 111(m) of the Customs Act (for short "the Act"). However, as far as the penalty on assessee was concerned, the same was reduced from Rs. 59,77,432 to Rs. 5,00,000 only.