Custom, Excise & Service Tax Tribunal
M/S Essar Oil Limited vs C.C. Jamnagar on 19 January, 2018
In The Customs, Excise & Service Tax Appellate Tribunal West Zonal Bench At Ahmedabad C/ROA/10531-10540/2017 Appeal No.C/12073-12081 & 11876/2015-SM [Arising out of OIA No. JMN-CUSTM-000-APP-048-057-15-16 dated 20.07.2015 passed by the Commissioner (Appeals), Central Excise Customs and Service Tax, Jamnagar] M/s Essar Oil Limited Appellant Vs C.C. Jamnagar Respondent
Represented by:
For Appellant: Mrs. Dimple Gohil (Advocate) For Respondent: Mr. S.N. Gohil (A.R.) CORAM:
HONBLE DR. D.M. MISRA, MEMBER (JUDICIAL) Date of Hearing:10.01.2018 Date of Decision19.01.2018 Final Order No. A / 10156-10165 /2018 Per: Dr. D.M. Misra Heard both the sides.
2. These applications are filed seeking restoration of the appeal dismissed earlier vide order dated 28.11.2016 as the applicant failed to comply with the amended Provisions of Section 129E of the Customs Act, 1962. Now, the Ld. Advocate submits that they have deposited the deficit amount, hence the Appeals dismissed be restored. Ld. A.R for the Revenue does not dispute the said facts. In the result, the order dismissing their appeals is recalled and the appeals are restored to its original number.
3. Since the issue involved in a narrow compass, the appeals are itself taken up for disposal, with the consent of both sides.
4. The short issue involved in the present appeals are whether the appellants are liable to penalty under Regulation 5 of the Customs (Provisional Duty Assessment) Regulations, 2011.
5. Ld. Advocate for the Appellant submits that even though they have filed applications with the department requesting extension of time for submission of relevant documents on 13.05.2014, as per Regulation 3, pertaining to bills of entry where provisional assessment had been directed, without responding to the extension letter, Show Cause Notice issued proposing penalty. It is her contention that even though there was delay in filing the application seeking extension of time to produce the documents, there was no intention whatsoever in not submitting or withholding the relevant documents necessary for finalization of the Provisional assessment. Further, she has produced a subsequent request letter dated 21.03.2017 seeking extension of time in filing the documents under the said Regulations, and the authorities had allowed such extension. In support of her contention that no penalty is imposable, in the circumstances of the present case, she has referred to the decision of this Tribunal in their own case reported at 2015 (325) ELT 401 (Tri. Amd.).
6. Per contra, Ld. AR for the Revenue has submitted that to avoid delay in finalization of provisional assessment, penal provision was introduced in the Customs (Provisional Duty Assessment) Regulations, 2011. In the present case, the appellant though required to submit the relevant documents by March 2014 against the imports made in February 2014, as prescribed under the said Regulation, but the request letter was filed on 13.05.2014. However, he has fairly accepted that the letter dt.13.5.2017 seeking extension of time was not responded by the Department.
7. I find that the appellant had filed an application seeking extension of time in filing the documents necessary for finalization of assessment. From the records and also subsequent correspondences placed by the Ld. Advocate for the Appellant, I find that due to late procurement of the relevant documents from different source, more or less in every provisional assessment case, they file request letter seeking extension of time in filing relevant documents. Also, from the communication dated 21.03.2017, I find that the extensions have been liberally allowed by the Department. In the present case, undisputedly, an extension letter was addressed on 13.05.2014 which was neither allowed nor rejected. In these circumstances, imposition of penalty, in my opinion, is uncalled for, accordingly set aside. Appeals are allowed.
(Pronounced in the open court on 19.01.2018) (Dr. D.M. Misra) Member (Judicial) Neha 3 | Page C/12073-12081 & 11876/2015-SM