SADIQ BROTHERS MARINE WORKS Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) This appeal filed under Section 130 of the Customs Act is against an order passed by the Customs, Excise and Service Tax Appellate Tribunal, Chennai in Appeal No. C/43/2007 dated 28.04.2008, whereby the appeal filed was rejected, but the penalty and fine were reduced.

(2.) We heard the learned counsel for the appellant and the learned Standing Counsel appearing for the Revenue.

(3.) Briefly stated the facts of the case are, that two deep sea fishing trawlers of foreign origin were imported by M/s. Kerala State Co-operative Federation for Fisheries Development Ltd. ('Matsyafed' for short). Subsequently, Matsyafed invited tenders for the disposal of the trawlers and being the successful tenderer, the trawlers were sold to the appellant on 26.02.1998. According to the appellant, finding the trawlers to be not seaworthy, they sent it for breaking up. Later, show cause notice was issued to the appellant under Section 124 of the Customs Act for confiscating the vessels under Section 111(o) of the Act and imposing penalty on the appellant under Section 112 of the Act, besides recovering duty from him. This was on the basis that there was non compliance of the provisions contained in notification No. 133/87. In the adjudication that was followed, the demand was confirmed. In the further appeal that was filed, the Tribunal passed the impugned order, whereby the order was upheld, but the fine and penalty alone were reduced. This is the background in which the appeal is filed.