2018 (3) TMI 1260

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....ngh Sandhu and one appeal is filed by the Revenue. 2. The facts of the case are that M/s. Amba Expo Fab has obtained advance licence from the DGFT for duty free import of PFY/POY by falsely declaring themselves as manufacturer-exporter whereas no manufacturing unit exists at the factory address declared by them and has imported a number of consignments free of customs duty, against the DEEC advance licences with actual user condition issued under Duty Exemption Entitlement Scheme (DEEC) and the same has been diverted into domestic market instead of using the same in manufacture of export goods. The charge on the appellant Shri Kamal Agarwal is that being the Executive Director of M/s. Aren Shipping Agency Pvt. Ltd., he conspired with Shr....

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....ellants. Therefore, these appellants are before us. In the Revenue s appeal, the Revenue is seeking enhancement of penalty of Rs. 75,00,000/- under Section 114A equal to the confirmed duty of Rs. 3,47,48,553/-. 3. Shri Vinay Ansurkar, learned counsel appeared on behalf of the appellant, Shri Kamal Agarwal. However, none appeared on behalf of Shri Harbhajan Singh Sandhu and Amba Expo Fab. Shri Ansurkar submits that the appellant, Shri Kamal Agarwal is Executive Director of a shipping agency who is not supposed to handle the goods and documents regarding advance licence. Therefore it cannot be said that he conspired in fraudulent benefit of advance licence by the importer. He prayed for setting aside the penalty. 4. Ms. Trupti Chavan, l....

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....ty on Shri Kamal Agarwal from Rs. 2,00,000/- to Rs. 1,00,000/-. As regards the appeal of Shri Harbhajan Singh Sandhu, we observe that he is the person who imported and cleared the goods by using the advance licence and the goods were diverted to domestic market. Therefore, he was directly involved in the fraud of advance licence and was the next gainer of the benefit derived from the said fraud. Therefore, the penalty imposed of Rs. 2,00,000/- on Shri Harbhajan Singh Sandhu is just and proper. We do not see any reason to interfere in the penalty imposed on Shri Harbhajan Singh Sandhu. Accordingly we uphold the penalty imposed of Rs. 2,00,000/- on Shri Harbhajan Singh Sandhu. Accordingly his appeal is dismissed. 6. As regards the Revenue ....