VISTEON AUTOMOTIVE SYSTEMS INDIA LIMITED Vs. CESTAT, CHENNAI

JUDGEMENT

(1.) This appeal is preferred by the assessee against the final order rendered by the Customs, Excise and Service Tax Appellate Tribunal in Final Order No. 1670 of 2009, dated 11-11-2009.

(2.) The Civil Miscellaneous Appeal was admitted by this Court on 22-9-2011 on the following substantial questions of law :

(3.) The facts leading to the decision on the above questions which have fallen for consideration in the above appeal, are that the appellant-Company has been regularly importing certain goods; few of its consignments imported during 1999-2000 were cleared; however, the appellant has found that the goods pertaining to certain invoices were cleared without filing the Bill of Entry and without payment of import duty. Upon realising the error, the appellant-Company itself brought to the notice of the Chief Commissioner of Customs, Chennai, on 11-10-2000 explaining the reasons for the lapse and subsequently paid the duty together with interest, totalling to little more than Rs. 54.37 lakhs. It is after payment of duty together with interest, a show cause notice was issued as to why the goods valued at Rs. 60,42,924/- as detailed in the annexure to the said show cause notice, should not be held liable for confiscation under Sections 111(l) and 111(m) of the Customs Act, 1962. It was also further set out as to why penalty be not levied under Section 112(a) and 114A of the Customs Act. The appellant participated in the enquiry and the second respondent-Commissioner of Customs (Import) (Sea Port), Chennai, passed the Order-in-Original No. 705 of 2003, dated 30-6-2003, confiscating the goods valued at Rs. 60,42,924/-, imported vide nine Bills of Entry as detailed in the show cause notice and imposing penalty of Rs. 13,59,317/- under the first proviso to Section 114A of the Customs Act, after appropriating Rs. 54,37,268/- already paid by the appellant towards duty and interest leviable. A further fine of Rs. 3 lakhs had also been imposed under Section 125 of the Customs Act. An appeal was preferred by the appellant against the above Order-in-Original, to the Tribunal. The Tribunal, by its order dated 11-11-2009 in Final Order No. 1670 of 2009, has arrived at a finding that proviso to Section 114A of the Customs Act, is not attracted in the facts and circumstances of the present case, as the appellant-Company has voluntarily disclosed the information after they discovered the mistake and paid the duty and interest in respect of the imported goods, cleared but not covered by the Bills of Entry filed by them. The Tribunal has confirmed the redemption fine of Rs. 3 lakhs and set aside the penalty imposed under Section 114A of the Act, and directed that penalty of Rs. 1 lakh be imposed on the appellant under Section 112(a) of the Act, as the show cause notice issued to the appellant has adverted to the same. The appeal was otherwise rejected by the Tribunal. The present C.M.A. has been directed against the above order passed by the Tribunal.