HINDUSTAN PHOTO FILMS MFG. CO. Vs. CC

JUDGEMENT

(1.) THIS appeal arises from Order -in -Original No. 236/97 dated 4.12.1997 confirming the differential duty of Rs. 26,48,599/ -confirmed under Section 28(1) of the Customs Act, which has since been paid by the appellants. There is a confirmation of like sum of penalty under Section 114(A) of the Customs Act. The imported DG set had been sold in violation of the provisions of Project Imports Regulation, hence the imported goods had been confiscated, however, the same was released on payment of fine of Rs. 50,000/ -.

(2.) WE have heard both sides in the matter. The issue lies in a very short compass. There is no dispute with regard to violation of Project Import regulations necessitated the appellants to deposit the duty amount which they have fully complied. The only ground raised by the appellant is that due to financial factors, the appellant had to take a decision to sell one of these imported DG sets and the said decision was not with any mala fide intention to evade duty and the duty was paid immediately even before issue of the show cause notice and therefore, in such circumstances the goods should not have been confiscated nor redemption fine be imposed in the matter. It is further contended that during the relevant period Section 114A was not in statute book and therefore, no penalty is required to have been imposed under the said section. In this regard, he relied on the judgment of Hon'ble Supreme Court in the case of Akbar Badruddin Jiwani v. CC as .

(3.) ON a careful consideration of the submissions on both sides, we are of the considered opinion that the mandatory penalty was imposed under Section 114(A), which is not leviable in the present case as during the relevant period violation was in terms of the Project Imports and the said section was not in statute and hence imposition of mandatory penalty under Section 114(A) is set aside.