TaxTMI 
TaxTMI 
2023 (11) TMI 422
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....K Shipping & Logistics Pvt Ltd. The Adjudicating Authority imposed penalty of Rs. 10 Lacs each under Section 114 (i) and under Section 114 AA on M/s. MSK Shipping & Logistics Pvt Ltd and Rs. 15 Lacs each under Section 114 (i) and under Section 114 AA on Shri Rajesh who have filed the shipping bill on behalf of the exporter of wash basins on behalf of M/s. Sanyo Ceramics. On investigation by DRI officers it was revealed that the containers loaded wash basins from M/s. Sanyo Ceramics was opened enroute and the same was replaced with red sanders which was attempted to be smuggled out of India under the Shipping Bill of wash basins filed by the appellant. It was alleged against the appellant that they have not taken immediate action to inform t....
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....y placed person involved in present case namely Shri Karan Chauhan, this tribunal has set aside the penalty. In view of the aforesaid judgment in the present case also penalty is liable to be set aside. 3. Shri Sanjay Kumar, Learned Superintendent (AR) appearing on behalf of the Revenue reiterates the finding of the impugned order. 4. We have carefully considered the submission made by both sides and perused the records. We find that the penalties were imposed by the Adjudicating Authority only on ground that the appellant have not informed the customs authoritiesimmediately about the stuffing of red sander in the container and informed only on the next day. In this regard we find that the appellant has given a statement that in the e....
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....istration certificate, factory stuffing permission etc issued in name of exporter M/s Sanyo Ceramics and also complete KYC documents duly issued by the exporter to the CB. After going through the findings of the adjudicating authority as discussed at paragraph 17.2 (xiv) and 17.2 (vii) of the impugned order, it is observed that the adjudicating authority only stated that the involvement of Shri Rajesh Khimani cannot be ruled out in the scam of attempt to illegally export the prohibited goods of Red Sanders Logs. Appellant has contended that at the time of receiving documents and container from exporter Shri Rajesh Khimani, employee of the CB took due diligence in getting export documents like export invoice, packing list. BL etc with duly i....
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....ker M/s. MSK Shipping & Logistics Pvt Ltd." 4.1 The learned Commissioner (Appeals) accepting that the appellant did not have direct involvement in the illegal export of prohibited good red sander reduced the penalty substantially. In our view oncethe Commissioner (Appeals) is of the view that the appellant have no direct involvement, the penalty even reduced cannot be upheld. 4.2 As per the facts which is not under dispute the appellants came to know about this fact from one Shri Karan Chauhan against whom also for the same reason the penalties were imposedwhich was reduced by the Commissioner (Appeals). In an appeal against the Commissioner (appeals) order this Tribunal set aside the penalty vide order No. A/11130/2023 dated 01.05.20....
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....of the Customs Act, 1962. However, at the same time, the facts remains that the goods and the container in which the goods were stuffed were used for the attempt to illegally export the prohibited red sanders and when the appellant come to know about the concealment of prohibited goods in the containers meant for export, he failed to inform the authorities about the same. Thus, the appellant cannot be absolved completely from the penal provisions provided in the statute. In view of the above , the penalties under Section 114 (i) and under Section 114 AA need to be reduced to meet the ends of justice." From the above finding the Learned Commissioner appeal has clearly held that the appellant had no knowledge about any of the act whi....