COMMR. OF CUS. Vs. INDIAN MRI DIAGNOSTIC AND

JUDGEMENT

(1.) THIS appeal filed by the department is against an order of the Commissioner of Customs, against which the respondents had filed Appeal No. C/1250/98 which was disposed of by this Bench as per Final Order No. 763/2003, dated 5 -8 -2003 .

(2.) IN the impugned order, learned Commissioner of Customs had confiscated "Whole Body CT Scanner" imported by the respondents, with option for redemption against payment of a fine of Rs. 23,61,039/ -. He, however, refrained from imposing any penalty on the party, "considering the peculiar circumstances of the case and the fact that the party did give some free treatment to patients". In the aforesaid final order, we upheld the confiscation along with the quantum of redemption fine. The present appeal of the Revenue is against the non -imposition of penalty by the Commissioner.

(3.) HEARD both sides. Ld. SDR, reiterating the grounds of the appeal, submitted that, where it was found that the assessee had, by their post -importation conduct, rendered the goods liable to confiscation under Section 111 of the Customs Act, they ought to have been penalised under Section 112 of the Act. The so -called "peculiar circumstances of the case" were not spelt out in the impugned order. That the party had given some free treatment to patients was not enough to exonerate them from penal liability under Section 112. Ld. Counsel for the respondents endeavoured to justify the Commissioner's decision as regards the proposal for imposing penalty.