Tribunal reduces penalty to Rs. 20,000 citing lack of cooperation with customs

The tribunal upheld the penalty under Section 117 but reduced the amount to Rs. 20,000, citing the appellant's lack of cooperation with customs. The appellant's argument of not being the importer under the Customs Act was accepted, resulting in a partial allowance of the appeal.

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Issues Involved:
Penalty under Section 112 and Section 117 imposed on the importer.

Analysis:

Penalty under Section 112:
The case involved the imposition of a penalty of Rs. 2,00,000 under Section 112 and Rs. 50,000 under Section 117 on the importer. The appellant's container was examined, revealing discrepancies in the declared quantity and the actual quantity of shoes, including branded ones. The appellant admitted to receiving branded shoes without ordering them and not making payments. The branded shoes were confirmed as counterfeit goods by the brand holders. The Commissioner (Appeals) upheld the penalties, citing the appellant's failure to file a Bill of Entry, involvement in misdeclaration, and lack of cooperation with investigations.

Grounds of Appeal:
The appellant challenged the penalties, arguing that the goods were wrongly supplied, penalties were excessive, and the appellant was not the importer as per the Customs Act's definition. The appellant claimed to have ordered unbranded shoes, not the branded ones received. The appellant contended that non-filing of a Bill of Entry did not make them liable for penalties and cited a tribunal ruling supporting this argument.

Tribunal Decision:
The tribunal considered the appellant's failure to file a Bill of Entry and the dubious conduct in not informing customs about the misdeclaration. While the appellant was not considered the importer under the Customs Act, the tribunal upheld the penalty under Section 117 due to the lack of cooperation and failure to inform customs about the abandoned goods. The penalty under Section 117 was reduced to Rs. 20,000. The tribunal modified the impugned order, allowing the appeal in part.

In conclusion, the tribunal upheld the penalty under Section 117 but reduced the amount, considering the appellant's conduct and failure to cooperate with customs. The appellant's argument regarding non-liability for penalties due to not being the importer was accepted, leading to a partial allowance of the appeal.

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