ORKAYEM APPAREL LIMITED Vs. THE COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) This appeal has been filed by the Assessee aggrieved by the order passed by the Customs Excise and Service Tax Appellate Tribunal dated 28.02.2017 upholding the imposition of penalty on the Assessee. The short order passed by the learned Tribunal is quoted below for ready reference.

(2.) Learned counsel for the appellant Assessee submitted that in the present case, parallel penalty proceedings were initiated by D.G.F.T. also and upon consideration of the facts, where the Assessee paid the due customs duty on account of the alleged sale of 254 sewing machines out of the imported lot of 554 machines, the D.G.F.T. authorities have reduced the penalty in question from Rs.32,00,000/- to Rs.10,000/-. He further urged that during the course of penalty proceedings under the Customs Act, this fact was brought to the notice of the concerned authority that the proceedings of the D.G.F.T., was also pending, but without waiting for the result thereof, the authorities under the Customs Act imposed a fine of Rs.20,00,000/- and penalty of Rs.6,50,283/-. He therefore submitted that the Assessee may be given liberty to approach the competent authority under the Customs Act viz., Commissioner of Customs to reconsider the issue of fine and penalty in view of the subsequent developments which have taken place with the D.G.F.T. authority.

(3.) Learned Special Government Pleader (Taxes) Mr.Santhanaraman, however supported the impugned order passed by the learned Tribunal.