Logistics v. Cc Chennai

Heard both sides.

2. The applicant filed this application for waiver of pre-deposit of penalty of Rs.5,00,000/- imposed under Sections 114 and 117 of the Customs Act.

3. Against the adjudication order, the applicant filed appeal before the Commissioner (Appeals) along with application for waiver of pre-deposit of dues. The Commissioner (Appeals) directed the applicant to deposit 50% of the penalty for hearing of the appeal. The applicant had not complied with the conditions of the stay order hence the appeal was dismissed.

4. The contention of the applicant is that the applicant is a steamer agent and at the request of one M/s. J.A. Maritime, freight forwarder, the applicant supplied a container. Subsequently it was found that the container was used for export of prohibited goods.

5. The contention of the applicant is that there is no evidence on record to show that the applicants were aware of the activity of the exporter. The applicant only supplied the container at the request of M/s. J.A. Maritime. In these circumstances, the applicants are not liable for any penalty. The applicant relied upon the decision of the Tribunal in the case of Skyline Shipping & Logistics vs. CC, Chennai reported in 2010 (262) ELT 985.

6. The Revenue relied upon the findings of the lower authority as in para 78.7 of the adjudication order and submitted that the applicant without any proper verification supplied the container.

7. I have gone through the adjudication order and find that there is no finding to show that the applicants were aware of the fact regarding export of prohibited goods. The applicant only supplied a container at the request of M/s. J.A. Maritime. In these circumstances, prima facie the applicants have a strong case in their favour. Therefore, pre-deposit of the penalty is waived and recovery of the same is stayed. Stay petition allowed.

8. As noted above, the Commissioner (Appeals) has not decided the appeal on merits hence the impugned order is set aside and the matter is remanded to the Commissioner (Appeals) to decide the appeal on merits after affording an opportunity of hearing to the appellant. (Dictated in Court) (S.S. Kang) Vice President tvu