The main legal point established in the judgment is that the exercise of discretion by the Customs Commissioner and the Appellate Tribunal must conform to the provisions of the Customs Act, 1962, and the notifications issued by the Government regarding import restrictions.

JUDGMENT :

S.V.Bhatti, J.

Heard learned ASG N.Venkataraman and learned Adv.P.A.Augustine for parties.

2. The instant Customs Appeals are under Section 130 of the Customs Act, 1962 (for short 'Act 1962) and are at the instance of M/s Shree Amman Dhal Mill/Importer and the Commissioner of Customs, Kochi/Revenue. For convenience, the parties are referred to as 'Importer' and 'Revenue' respectively. The appeals are directed against final order No.20845/2020 dated 16.12.2020 of the CEST Appellate Tribunal, South Zonal Bench, Bangalore. The appellate Tribunal through the impugned order dated 16.12.2020 held and directed as follows:

"In view of the above, the appeal is disposed of by allowing redemption of impugned goods on payment of fine of Rs.12,00,000/-(Rupees Twelve Lakh only) in lieu of confiscation under Section 125 of the Customs Act, 1962. However, penalty of Rs.4,00,000/-(Rupees Four Lakhs only) imposed by the Commissioner is upheld."

3. Hence, Customs Appeal No.13 of 2020 is at the instance of Importer challenging the levy of penalty of Rs.4 lakhs and Customs Appeal No.14 of 2020 is at the instance of Revenue questioning the release of subject goods on payment of redemption fine of Rs.12 lakhs.

4. The undisputed circumstances leading to the filing of Customs Appeals are stated thus:-

The Union of India in exercise of power under Section 3 of Foreign Trade (Development and Regulation) Act, 1992 referred to as FTDR Act issued Notification No.37/2015-2020 dated 18.12.2019. The said notification is followed by Notification No.1225(E) dated 28.3.2020. The notifications have bearing on the submissions made by the counsel appearing for the parties and we find it useful to excerpt the respective notifications hereunder:

Government of India

Ministry of Commerce & Industry

Department of Commerce

Directorate General of Foreign Trade

Notification No.37/2015-2020

New Delhi, dated: 18th December, 2019

Subject: Amendment in import policy and Policy condition under HS code 0713 1000 of Chapter 7 of ITC (HS), 2017, Schedule-I (Import Policy).

S.O.(E): In exercise of powers conferred by Section 3 of FT (D&R) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2015-2020, as amended from time to time, the Central Government hereby amends import policy and policy conditions under HS code 0713 1000 of Chapter 7 of ITC (HS), 2017, Schedule-(Import Policy), as under:

Effect of the Notification: Import of Peas (Pisum Sativum) including yellow peas, Green peas, Dun Peas and Kaspa Peas is restricted and import subject to MIP of Rs.200/-CIF per kilogram and import is allowed only through Kolkata sea port.

This issues with the approval of Minister of Commerce & Industry.

Sd/-

(DIWAKAR NATH MISRA)

Joint Secretary to the Government of India

(F.No.14/3/2018-EP(Agri.III)

Note : The principal notification No.36/201