2009 (8) TMI 1018 - AT - Customs

Penalties for Import Goods Diversion in Customs Act: Key Parties Penalized and Exonerated

Various parties were penalized under sections 112(a) and 112(b) of the Customs Act, 1962 for diverting imported goods meant for earthquake relief. M/s. ... - Issues involved: Imposition of penalties u/s 112(a) and 112(b) of the Customs Act, 1962 on various parties for diversion of imported goods meant for earthquake relief.Imposition of penalties on M/s. Nopaji Lakhmaji Charitable Trust and Shri Shantilal Jain:- The trusts imported old garments under exemption for earthquake relief but diverted them for sale.- Shri Shantilal Jain allowed the diversion knowingly.- Penalties of Rs. 50 Lakhs each were imposed, reduced to Rs. 10 Lakhs and Rs. 4 Lakhs respectively. Imposition of penalties on M/s. Shivam Development Trust and Shri V.N. Gusai:- Shri V.N. Gusai's involvement was minimal, penalized for handing over blank letterheads.- Commissioner found no evidence of import by the trust or Gusai, set aside the penalties of Rs. 50 Lakhs each.Imposition of penalty on Shri Dev Kumar Kapta:- Kapta filed Bills of Entry without authorization for one trust, but not aware of diversion.- No evidence linking him to the subsequent sale of goods, penalty of Rs. 25 Lakhs set aside.Conclusion:- Penalties reduced for some parties due to minimal involvement or lack of evidence.- Appeals disposed off accordingly on 25th Aug. 2009.