P. Dinesha ORDER
P. Dinesha, Member (J)
1. The only issue involved in the above appeal by the assessee is the levy of penalty under Section 114AA of the Customs Act, 1962.
2.1. The facts leading to the present dispute are that the appellant, being an importer, filed a Bill-of-Entry dated 09.04.2018 for the import of raw cotton and the imported goods were supplied by M/s. Mehment Dogan Docotton Group, Turkey and the Country-of-Origin was Turkmenistan. The goods being one which required "No Objection" Certificate from Plant Quarantine (hereinafter referred to as 'PQ') authorities, the imported goods were subjected to first check examination.
2.2. The Plant Quarantine Officer (WS) of the Directorate of Plant Protection, Quarantine & Storage, Plant Quarantine Station, Tuticorin, however, vide communication dated 04.05.2018 ordered for deportation/destruction of the subject import consignment as per Clause 3 (16) of the Plant Quarantine (Regulation of Import into India) Order, 2003 since, according to him, the consignment was imported under "Fake PSC" (Fake Phytosanitary Certificate).
2.3. The Adjudicating Authority, based on the above communication by the PQ Officer, assessee's request for waiver of Show Cause Notice and personal hearing, took up the assessee's case for adjudication and vide Order-in-Original dated 27.06.2018 ordered confiscation of the goods imported under Section 111 (d) of the Customs Act, 1962 with an option of redemption under Section 125 ibid and also imposed penalties under Sections 112 and 114AA ibid.
2.4.1. The appellant carried the matter in appeal before the First Appellate Authority i.e., the Commissioner of G.S.T. and Central Excise (Appeals), Tiruchirapalli. During the pendency of its first appeal, the appellant furnished another certificate by the same authority dated 24.09.2018 with the following remarks:
"Competent authority has approved relaxation. All conditions of relaxation shall be applied".
2.4.2. The Ld. First Appellate Authority after considering the pleadings and also the subsequent certificate issued by the authority, vide Order-in-Appeal No. 199/2018 dated 24.10.2018 allowed the appeal by way of remand for fresh consideration. The First Appellate Authority in its findings has categorically observed as under:
"The Order-in-Original No. 25/2018 dated 27.06.2018 was based on the fact that the imported 'Raw Cotton' has not been accorded NOC by the PQ Authorities as the same was imported under 'Fake Phytosanitary Certificate (PSC)' and the PQ authorities has since relaxed the conditions and allowed PQ Clearance on 24-09-2018 for the above consignments and hence, I find that this is a fit case for remanding back to the original authority to decide it based on the PQ Clearance issued on 24-09-2018 by PQ Authorities, Tuticorin."
(Emphasis supplied)
Both the Revenue as well as the assessee accepted the above order of the First Appellate Authority without challenging the same in any appeal.
3.1. Based on the above remand order, the Original Authority resumed adjudication proceedings and vide Order-in-Original (Denovo) dated 10.12.2018, after accepting the remarks of the PQ Authorities, concluded that the PQ clearance was given by relaxing the norms, but however, imposed a penalty of Rs. 2,00,000/-, the payment of which was made condition for clearance for home consumption.
3.2. The appellant preferred appea........