Customs Act penalty appeal partially allowed, reduced from Rs. 75 Lacs to Rs. 25,000 for employee's limited role.

The Tribunal partially allowed the appeal in a case involving the imposition of a penalty under Section 114(iii) of the Customs Act, 1962. The appellant, an employee of M/s. MAZDA GLOBAL, was penalized for alleged involvement in fraudulent export by overvaluing goods. The Tribunal found the penalty of Rs. 75 Lacs excessive and reduced it to Rs. 25,000 due to the appellant's limited role and lack of awareness of the overvaluation. The delay in adjudication of the show cause notice was considered, and the impugned order was modified accordingly.

---

---

Issues Involved:
1. Imposition of penalty under Section 114(iii) of the Customs Act, 1962.
2. Alleged overvaluation of goods intended for export.
3. Role and responsibility of the appellant, an employee of M/s. MAZDA GLOBAL.
4. Delay in adjudication of the show cause notice.

Detailed Analysis:

1. Imposition of Penalty under Section 114(iii) of the Customs Act, 1962:
The appellant, an employee of M/s. MAZDA GLOBAL, was penalized Rs. 75 Lacs under Section 114(iii) of the Customs Act, 1962. The original penalty was Rs. 1,00,00,000/- imposed by the Adjudicating Authority, which was reduced by the Commissioner (Appeals). The penalty was based on the allegation of the appellant's involvement in fraudulent export by overvaluing goods.

2. Alleged Overvaluation of Goods Intended for Export:
The case involved an attempt to export goods at an exorbitantly overvalued price. The goods were declared as "Friction Free Die" with a declared value of Rs. 1,25,09,319.00 (USD 2,83,980/-) in the shipping bill, which was later found to be only Rs. 6,000/-. The goods were seized under Section 113 of the Customs Act, 1962, for being grossly overvalued.

3. Role and Responsibility of the Appellant, an Employee of M/s. MAZDA GLOBAL:
The appellant, a 9th-standard pass individual, was employed as a low-level worker and not conversant with English. He signed the shipping bill on the authorization of his employer, M/s. MAZDA GLOBAL. The valuation was done by the employer, and the appellant had no reason to dispute it. The appellant's role was limited to signing the shipping bill based on the invoice prepared and signed by the employer. The appellant did not benefit from the overvaluation and was not involved in the planning or execution of the fraudulent export.

4. Delay in Adjudication of the Show Cause Notice:
The show cause notice was issued on 26.09.2007 and adjudicated on 26.06.2018, almost 11 years later. The appellant argued that the delay vitiated the proceedings. Although no specific time limit for adjudication is prescribed under the Customs Act, the appellant cited various judgments to support the argument that such a delay should invalidate the proceedings.

Judgment Summary:
The Tribunal found that the appellant, a low-level employee, acted on the instructions of his employer and was not aware of the overvaluation. The penalty of Rs. 75 Lacs was deemed exorbitant and not justified. The Tribunal reduced the penalty to Rs. 25,000/- considering the appellant's limited role and lack of involvement in the fraudulent activities. The impugned order was modified accordingly, and the appeal was partly allowed.

---