High Penalty under Customs Act Imposed on Importer of Rough Marble for Failure to Produce Special Import License: CESTAT reduces Penalty

CESTAT reduced a ₹25 lakh penalty imposed on an importer of rough marble blocks to ₹5 lakh, finding the original penalty disproportionate to the procedural lapse. The tribunal held that non-possession of a mandatory special import license (SIL) constituted a technical violation rather than intentional evasion. The case involved 500 tonnes of marble imported from Iran where the importer had applied for but not received the SIL before clearance. CESTAT noted the goods were ultimately used for declared industrial purposes without diversion to the domestic market. The ruling clarifies that penalties under Section 112 of the Customs Act must consider the gravity of violation and absence of malafide intent. This brings relief to genuine importers facing harsh penalties for documentation delays beyond their control.