CESTAT | No malafide intention found by revenue raises assumption that revenue satisfied with the ‘sufficient clause’

Custom, Excise and Service Tax Appellant Tribunal (CESTAT), Chennai: These appeals were preferred by the assessee before a Coram of P. Dinesha (Judicial Member), for waiver of penal charges, levied for belated filing of Bills-of-Entry.

The adjudicating authority had informed the appellant who was the Customs Broker that their request for waiver of penal charges for late filing of Bills-of-Entry was rejected. Appellant had filed an appeal before the first appellate authority but the same on being rejected this second appeal before this Tribunal was filed.

The dispute before the forum was with respect to the eligibility of the appellant for waiver of late filing fees, in terms of Section 46 (3) of the Customs Act, 1962 which deals with the entry of goods being imported with time limit of filing the same but states nothing related to the consequences on failure to adhere to the time limit. It was submitted that in the impugned order the bona fides of the appellant was not questioned as the cause shown were not rejected as insufficient, wrong or improper. Section 46 authorizes the proper officer to collect late fees unless he is dissatisfied with the cause shown for delay.

Tribunal was of the view that appellant was not the first importer and Revenue after collecting requisite fees allowed amendment in IGM on record which are developed after imports due to goods being perishable. Since, Revenue did not find any malafide intention in the development aforementioned it can be assumed that Revenue was satisfied with the ‘sufficient cause’. Therefore, the impugned order rejecting the request for waiver of penal charges for late filing of Bills-of-Entry was set aside. [Blueleaf Trading Co. v. Commissioner (GST), Customs Appeal No. 42670 of 2018, Order dated 08-05-2019]

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