COMMISSIONER OF CUS Vs. LAKSHMINARAYANA MINING CO

JUDGEMENT

(1.) THIS Customs Appeal under Section 130 of the Customs Act, 1962 (for short 'the Act'), is directed against the order dated 10 -5 -2011 passed by the Customs, Excise and Service Tax Appellate Tribunal (for short 'CESTAT') in Appeal No. C/486/2006 [2014 (305) E.L.T. 144 (Tribunal)], whereby, the respondent's appeal has been allowed and the order of imposing penalty under Section 114 of the Act has been set aside. Since the goods had already reached its destination outside the country, there was no question of its confiscation as contemplated under Section 113 of the Act and hence, there was an order of imposing penalty only. Appeal before the CESTAT was against the order of the Commissioner of Customs in Order -in -Original No. 5/2006, whereby, the Commissioner imposed the penalty of Rs. 25 lakhs on the respondent -exporter under Section 114 of the Act.

(2.) THIS Court while admitting the appeal on 20 -1 -2012, formulated the following substantial questions of law: -

(3.) IN the present case, the respondent -exporter had exported the consignment under Export Licence No. 0001718, dated 10 -3 -2004, wherein, they were permitted to export Iron Ore Fines containing Fe + 64 -65%. Since the Fe content of Iron Ore exported by the respondent -exporter was found to be more than 65%, in exercise of the powers conferred under Chapter XIII of the Act, a show cause notice under Section 114 of the Act was issued to the respondent -exporter to show cause, why the goods under Section 113(d) and (i) of the Act be not confiscated and penalty be imposed under Section 114(i) of the Act.