Redemption fine and penalty imposed by the Revenue Department without final assessment is not permissible

Last updated: 02 August 2021

Save Share

Quick Summary

The CESTAT Chandigarh has ruled that the Revenue Department cannot impose redemption fines and penalties without completing the final assessment of imported goods. In this case, the importer had already paid the differential duty, interest, and a 15% penalty at the time of provisional release. The Tribunal found that the Revenue Department failed to follow due process by not finalising the assessment, making the subsequent imposition of fines and further penalties unlawful.

Court :
CESTAT Chandigarh

Brief :
The Hon'ble CESTAT Chandigarh in matter of M/sJ.S. Steel Traders v. the Commissioner of Customs, Ludhiana [Custom Appeal No. 60037 of 2021, Final Order No. 60840/2021 dated May 24, 2021] set aside the order passed by the Revenue Department, imposing redemption fine and penalties on the assessee. Held that, without finalization of the assessment, re-assessment of the bill of entry and duty paid by the assessee under Section 18(2) of the Customs Act cannot be adjusted and the duty, interest, 15% penalty in terms of Section 28(5) of the Customs Act, 1962 ('the Customs Act')paid by the assessee is sufficient.

Citation :
[Custom Appeal No. 60037 of 2021, Final Order No. 60840/2021 dated May 24, 2021]

Daily Limit Reached

You have reached your daily limit of 2 Free Judgements

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Judgements Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

282 Views Comment Share Custom Report

Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

View Judgements

Comments