Order Date – 16 March 2023

Parties: M/s. Visa Resources India Limited Vs Commissioner of Customs (Preventive), Bhubaneswar

Facts –

• The Appellant, M/s. Visa Resources India Limited, has imported 16 consignments under various Bills of Entry during the period 2011-2012 to 2014-2015.
• Show Cause Notice was issued to them under Customs (Provisional Duty Assessment) Regulations, 2011 seeking as to why penalty should not be imposed on them for non finalization of provisionally assessed Bills of Entry. 
• The Adjudicating Authority after going through the facts of the case, imposed a penalty of Rs.10,000/- under Regulation 5 of Customs (Provisional Duty Assessment) Regulations, 2011 by taking a lenient view. On an appeal filed by the revenue, the Adjudicating Authority imposed penalty @ of 50,000/- for each Bill of Entry.

Issue –

• Whether the appellant is liable to pay penalty under Regulation 5 of the Cu Customs (Provisional Duty Assessment) Regulations, 2011 or not?

Order –

• The Tribunal observed that it is seen that in case of 4 Bills of Entry, the assessment were not finalized without any fault on the part of the Appellant.
• The issue is also covered by the case law of Jai Balaji Industries Ltd. wherein, this Tribunal has held that the department has not been able to establish any deliberate delay or any mala fide intention on the part of the appellant. the adjudicating authority took a fair decision and imposed a nominal penalty of Rs.20,000/ which comes to Rs.2,500/- for each of the remaining 8 Bills of Entry yet to be finalized.
• Hence the appeal is allowed holding that the Adjudicating Authority was correct in taking a lenient view imposing penalty of Rs.10,000/-