Customs personal penalty upheld, but reduced after the appellant's admitted role in transporting the consignment.

Personal penalty under the Customs Act was upheld against a person accompanying a consignment from Nepal to India because he admitted his association with the goods and his role in transporting them over a long distance. His plea of innocence was rejected on the facts, as the circumstances supported liability to penalty under Section 112. The penalty was nevertheless moderated on the facts and reduced from Rs. 1 lakh to Rs. 10,000.

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Issues: Whether the personal penalty imposed under Section 112 of the Customs Act, 1962 on a person accompanying the consignment was justified, and if so, whether the penalty required reduction.

Analysis: The appellant had admitted that he was accompanying the consignment from Nepal to India and was associated with the owner of the goods. In view of the nature of the consignment and the appellant's role in transporting it over a long distance, his plea of innocence was not accepted and liability to penalty was upheld. However, the circumstances of the case warranted moderation in the quantum of penalty.

Conclusion: The imposition of penalty was sustained, but the amount was reduced from Rs. 1 lakh to Rs. 10,000.

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