The Bombay High Court has held that residual provision of Section 117 of the Customs Act cannot be invoked upon realising that no fines or penalties could be imposed under Sections 111 and 112 of Customs Act,1962.
The bench of Justice M.S. Sonak and Justice Jitendra Jain while dismissing the customs department’ s appeal held that the respondents import goods discharged through high-pressure pipelines from the vessel directly into tanks in the gated complex in the port area. After obtaining the necessary permissions from the authorities, some of the material may have been stored in non-bonded tanks but within the same gated complex. This was done after obtaining permission.
The department submitted that some of the material was stored in a non-bonded warehouse, which is impermissible. Though the permissions were granted, the appellant stored material more than the value permitted to be stored. He submits that the CESTAT erred in relying upon the decision of this Court in Commissioner of Customs (Import) Mumbai vs. Finesse Creation Inc., when, in fact, the Gujarat and Madras High Courts have taken a contrary view.
The assessee contended that no substantial questions of law arise in these appeals. The tribunal has considered the facts threadbare, and no appeal would lie only on questions of fact.
The assessee contended that the respondents import and warehouse edible oils. The warehouses where some excess material had to be stored for a limited period are in the same gated complex. He submitted that necessary permissions were applied for and obtained for such storage. He explained the circumstances in which there was a marginal increase of value in some instances, and such explanations were also accepted. Under Section 130 of the Customs Act, 1962, appeals can be entertained only if they involve substantial questions of law. The tribunal has considered this in considerable detail.
The court has dismissed the appeals of the department.
Case Details
Case Title: Commissioner of Customs Versus Frigorifico Allana Private Ltd.
Case No.: Customs Appeal (L) No. 30050 Of 2024 With Customs Appeal (L) No. 30034 Of 2024
Date: 27/11/2024
Counsel For Appellant: Satyaprakash Sharma
Counsel For Respondent: Sujay Kantawala
