LA GRANDE PROJECTS LIMITED Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) M /s. La Grande Projects Limited of Tikamgarh, Madhya Pradesh (herein after referred to as "the importer") imported 1669 used Diesel Car Engines from Singapore declaring them as Capital Goods for Granite Processing Plant. On enquiries made by the Customs Authorities from the Secretariat of Industrial Approvals (SIA), it was clarified that used Diesel Car Engines were not permitted to be imported under the licence granted to the Importer. Show cause notice proposing confiscation of the imported goods and proposing imposition of penalty was therefore issued to the Importer. The notice also proposed penal action against Shri Natwar Dalmia, authorized signatory and Shri Aditya Kumar Dalmia and Ms Ritu Dalmia, the Directors of the Importer Company. The notice was adjudicated by the Commissioner of Customs, who ordered confiscation of the goods under the provisions of Section 111(d), (f) and (n) of the Customs Act, 1962 with option to redeem the same on payment of fine of Rs. 125 lakhs, and also imposed penalty of Rs. 5 lakhs on the importer. He dropped the proceedings against co -noticees. The importer is in appeal against the confiscation and penalty, while the Revenue in its appeal seeks enhancement of fine and penalty on the importer and imposition of penalty on its Directors, of the Importer company.

(2.) THE Tribunal had earlier disposed of these appeals by Final Order No. A/850 to 853/WZB/05/CI dated 18/7/05, wherein, following the orders passed by the Northern Zonal Bench of the Tribunal in the case of the same importer covering import of identical goods, the redemption fine was reduced to 30% and the penalty was enhanced to 5% of the cif value of the goods. Aggrieved by this order, the Revenue preferred Customs appeal No. 13 of 2006 before the Hon'ble Mumbai High Court which by its Order dated 21/3/2006 remitted the matter back to the Tribunal for fresh decision as under:

(3.) LD . D.R. does not raise any objection to the admission of the Misc. application. The additional grounds are either in furtherance on the grounds already raised in the importers' appeal or are points of law essential for disposal of the appeals. The additional evidence comprises documents which were either existing when the impugned order of the Commissioner was passed and are in the nature of representations to the custom authorities or are in the nature of correspondence with the department in respect of the auctioned goods and the additional evidence is also being filed to arrive at the quantum of margin of profit or loss which would be available to the importers only when the goods in dispute are sold by the importers and would not be known to them at the time of clearance of the goods. Moreover, ascertainment of actual margin of profit is absolutely essential in this case. Since the additional grounds and evidence are vital for the purpose of disposal of the present appeals, the Misc. application is allowed, in the interests of justice, to the extent that it relates to determination of quantum of fine and penalty since the Hon'ble Bombay High Court has remitted the case only for determination of quantum of fine and penalty.