HAZEL MERCANTILE LTD. Vs. COMMISSIONER OF CUSTOMS, KANDLA

JUDGEMENT

(1.) M /s. Hazel Mercantile Ltd. Mumbai imported Mosstanol L which was warehoused after filing necessary Bill of Entry. However, they failed to clear some of the quantity of imported goods which remained in warehouse beyond permissible warehousing period of 12 months. They did not apply for extention also. The adjudicating authority permitted the re -export of balance quantity (168.00 MT) of un -cleared imported goods granting exemption from payment of interest. However, penalty of Rs. 1 lakh (Rupees One Lakh only) was imposed under Section 117.

(2.) SUBSEQUENTLY , the Commissioner (Appeals) rejected their appeal. Thereafter, M/s. Hazel Mercantile Ltd. filed this appeal.

(3.) THE main contention of the appellant was that the original authority did not give any reason for imposition of penalty that they had deliberately violated the provisions of Customs Act, 1962. No mala fide intention in not clearing the goods beyond the normal period of warehousing could be established.