The Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ), Chennai Bench held that the direction to remand matter is unnecessary as there was Payment of entire duty and penalty.
The respondent, the Custodian / Manager Respondent of M/s. Viking Warehousing CFS, was ordered to pay an amount of Rupees twenty-two lakhs on account of pilferage of goods from their CFS without filing Bill of Entry. The respondent paid up the entire duty amount on the goods illegally removed from CFS. Penalty of was imposed on the respondent under the Handling of Cargo in Customs Areas Regulations, 2009 for violation of said Regulations which was also paid. Hence, they preferred an appeal before the Commissioner (Appeals).
The Commissioner held that the matter was to be remanded back. The Department has therefore filed the present appeal aggrieved by the order of the Commissioner (Appeals) remanding the matter to the original authority.
Anandalakshmi Ganesh Ram appeared and argued for the Department (Appellant). The Counsel submitted that the Commissioner (Appeals) has remanded the matter to the adjudicating authority to re-examine the issue and further argued that the Show Cause Notice (SCN) issued is legal and proper and therefore the remand order by the Commissioner (Appeals) is beyond the scope of jurisdiction and is without application of mind.
Dr.SKrishnanandh appeared and argued for the respondent. The Counsel submitted that the respondent is not contesting the demand of duty or the penalty imposed and that the direction for remand of the matter by the Commissioner (Appeals) is without any cause as the respondent has paid up the duty and penalty.
A Coram consisting of C S Sulekha Beevi, Judicial Member held that “When the entire duty and penalty has been paid up by the respondent, I do not find grounds to re-examine as to whether the SIIB was the proper officer to issue SCN. For this reason, I find that the appeal filed by the Department is not without merits. The direction to remand the matter is totally unnecessary and uncalled for.”
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