1/4 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF OCTOBER, 2017 BEFORE THE HON’BLE Dr.JUSTICE VINEET KOTHARI W.P.No.19830/2017 (T-CUS) BETWEEN INDUSIND BANK LIMITED A COMPANY REGISTERED UNDER THE COMPANIES ACT, 2013 5TH FLOOR, CENTENARY BUILDING #28, M.G. ROAD, BANGALORE-560008. REP. BY ITS DEPUTY VICE PRESIDENT Mr. ROY MOYALAN.
...PETITIONER (BY SRI K.P. KUMAR, SENIOR ADVOCATE FOR SRI. AJAY J. NANDALIKE, ADVOCATE) AND 1. THE ADDITIONAL COMMISSIONER OF CUSTOMS AIRPORT AND AIR CARGO COMPLEX AIR INDIA SATS AIR FREIGHT TERMINAL KEMPEGOWDA INTERNATIONAL AIRPORT DEVANAHALLI, BENGALURU-560 300.
2. COMMISSIONER OF CUSTOMS (APPEALS) CR BUILDING, QUEENS ROAD BENGALURU-560001.
...RESPONDENTS THIS WRIT PETITION IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING DECLARE THAT THE IMPUGNED ORDER DTD:28.01.2016 PASSED BY R-1 IS UNSUSTAINABLE AND IN VIOLATION OF THE PRINCIPLES OF NATURAL JUSTICE TO THE EXTENT THAT IT IMPOSES REDEMPTION FINE & ETC.
THIS PETITION COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER Mr. K.P. Kumar, Senior Adv., for Mr. Ajay J. Nandalike, Adv. for Petitioner.
The order impugned before this Court in the present petition Annexure-A dated 26.02.2016 passed by the Additional Commissioner, ACC, Bengaluru, is appealable before the Higher Authority Commissioner (Appeals) under the provisions of Section 128 of the Customs Act, 1962.
2. In the present petition, the petitioner- M/s.Induslnd Bank Limited (for short ‘the Bank’) was mainly aggrieved by the imposition of Redemption Fine of Rs.1 Crore under Clause-III of the impugned order. The operative portion of the impugned order is extracted below for ready reference:
ORDER I) “I confirm the demand of short paid duty of Rs.30,98,651/- (Rupees thirty lakhs ninety-eight thousand six hundred and fifty one only) on the value of goods Imported amounting to Rs.97,88,20,000/- (Rupees ninety seven crores eighty eight lakhs twenty thousand only) imported by M/s. Indusland Bank vide the Bill of Entry No.9973606 dtd 27.04.2013 under Section 28(4) of the Customs Act, 1962;
II) I also confirm the applicable interest on the short paid duty as mentioned above under Section 28AA of the Customs Act, 1962;
III) The goods valued Rs.97,88,20,000/- (Rupees ninety seven crores eighty eight lakhs twenty thousand only) are held liable for confiscation and in lieu of confiscation impose redemption fine of Rs.1,00,00,000/- (Rupees one crore) under the provisions of Section 125 of the Customs Act, 1962;
IV) I Impose a penalty equal to the sum of duty and interest as demanded at Sl.Nos I) and II) above, under Section 114A of the Customs Act, 1962. However, if the said duty and interest are paid within 30 (thirty) days of issue of this order, the penalty to be paid shall be 25% (twenty-five percent) of the duty and interest demanded as above, as per first proviso to Section 114A of the Customs Act, 1962;”
3. Learned counsel for the petitioner submitted that the differential Customs Duty imposed by Respondent No.1-ACC has already been paid by the petitioner-Bank. However, the petitioner-Bank has challenged the imposition of the Redemption Fine in lieu of confiscation of Gold imported by it.
4. In view of an effective alternate remedy being available to the petitioner-Bank, the present petition is held to be not maintainable. However, since the limitation in filing such an appeal might have expired by now, as prayed by learned counsel for the petitioner-Bank, the petitioner-Bank is permitted to file an appeal even now i.e., within the period of 30 days from today.
If such an appeal is filed by the petitioner-Bank within a period of 30 days from today, the same shall be entertained by the Appellate Authority-Commissioner (Appeals) without raising any objection on the question of limitation, but however the petitioner-Bank will satisfy and comply with the other conditions for maintaining such appeal before the Appellate Authority.
The petition is accordingly disposed of. No costs.
Sd/- JUDGE TL Sl.No.11