2024-VIL-876-CESTAT-AHM-CU
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CUSTOMS CESTAT Cases

Customs – Section 114A of Customs Act, 1962 – Section 3(7) of Customs Tariff Act, 1975 – Import of goods – Delayed payment of duty – Levy of interest and penalty – Sustainability – For manufacturing goods for export, Appellant have imported Plastic granules, Additives etc. under Advance Authorization Scheme and availed exemption under Notification No.18/2015-Cus – DRI had raised objection about non-compliance of pre-import condition – Department issued show cause notices proposing to demand duty (ISGT) – Commissioner confirmed demand of duty along with interest and imposed penalty under Section 114A of Customs Act – Whether Appellant is liable to pay duty, interest, redemption fine and penalty for violation of Pre-Import Condition in connection with imports made under Advance Authorization scheme – HELD – Notification No.18/2015 has exempted materials imported into India against Advance Authorisation issued by Regional Authority from whole of duty of Customs – On introduction of GST w.e.f. 1-7-2017, Additional Customs Duties (CVD & SAD) subsumed into newly introduced Integrated Goods and Service Tax (IGST) – Notification No.18/2015 was amended by Notification 79/2017-Cus to extend exemption from payment of IGST at time of import of input materials under Advance Authorizations, subject to pre-import condition – Appellant has not objected duty (IGST) payment seriously, which is paid and its credit is allowed to Appellant – Appellant challenged demand of interest, imposition of redemption fine and penalty by claiming it to be illegal and unjustified – For recovery of IGST on import of goods, provisions are made under Section 3(7) of Tariff Act, however, no specific provision is made for recovery or charging of interest, fine and penalty – Revenue has not been able to show any charging provision for levy and collection of interest, fine and penalty for late payment of IGST – In absence of specific provision relating to levy of interest, redemption fine and penalty, same cannot be demanded by taking recourse to machinery provisions relating to recovery of duty – Orders for recovery of Interest, Redemption Fine and Penalty are without authority of law and hence, set aside – Appeals allowed
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