SANDIP EXPORTS LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) AFTER examining the records and hearing both sides, we are of the view that the appeal itself requires to be finally disposed of at this stage. Accordingly, after dispensing with predeposit, we proceed to deal with the appeal.

(2.) THIS appeal filed by M/s. Sandip Exports Ltd. is against a penalty imposed on them under Section 114A of the Customs Act by the Commissioner of Customs (Export), Chennai. One M/s. Adani Exports Ltd. had entered into a High Sea Sale Agreement with the appellants on 15.9.2003, whereunder 2 consignments of mulberry raw silk procured from abroad by the former was agreed to be sold to the latter. The appellants filed 2 Bills of Entry, both dated 29.10.2003, for clearance of the goods, but did not follow up the matter. M/s. Adani Exports Ltd. informed the Customs authorities that they were cancelling the High Sea Sale Agreement as the appellants were yet to receive the original documents. They requested the Customs authorities to amend the name of the consignee. They also requested their steamer agents to apply for such amendment. Meanwhile, M/s. Adani Exports Ltd. also approached the Hon'ble High Court for recovery of the goods which had, by then, been seized by the Customs authorities. The Hon'ble High Court, by an interim order, directed release of the goods to the writ -petitioner against production of original Bill of Lading and payment of dues including duty with interest, redemption fine etc. Subsequently, in adjudication of a show -cause notice issued to the appellant, a dispute arose before the Commissioner as to who was liable to pay penalty under Section 114A of the Customs Act in connection with the aforesaid Bills of Entry. Though the Bills of Entry had been filed by the appellants, learned Commissioner, in terms of the order passed by the Hon'ble High Court, allowed M/s. Adani Exports Ltd. to redeem the goods against payment of fine of Rs. 3.50 lacs under Section 125 of the Customs Act as also payment of duty of Rs. 12,50,402/ - (with interest) under Section 28 of the Act. However, a penalty equal to duty was imposed on M/s. Sandip Exports Ltd. (Appellants) under Section 114A of the Act. This is the point of grievance in this appeal.

(3.) IN the instant case, learned Commissioner himself recognized M/s. Adani Exports Ltd. as the owner of the goods liable to pay duty with interest in addition to fine. Any liability to pay penalty equal to duty under Section 114A of the Customs Act is on that party and not on the appellants.