2024 (6) TMI 853

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....eals have been filed by two individuals, viz., Shri Sundararaman, Director (Finance) and Shri Ravindra Prakash Srivastava, Deputy General Manager (Marketing & Liaison) of M/s Rashtriya Chemicals & Fertilizers Ltd, out of the several who were proceeded against under Customs Act, 1962 along with M/s Rashtriya Chemicals & Fertilizers Ltd and M/s ICICI Bank Ltd in connection with clearance of goods, effected against bill of entry no. 480059/22.07.2004 and bill of entry no. 931881/22.07.2004 that were confiscated under section 111(o) of Customs Act, 1962, for having been imported without the certifications prescribed for availing exemption under notification no. 84/1997-Cus dated 11th November 1997 as amended from time to time. By order [ order-....

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.... imposed under section 112(a) for abetment on account of negligence also.' prefacing it with '53. As regards M/s RCF though they were not the importers - in the sense that they did not file the B/E-but they were the direct beneficiaries of the exemption notification. As per the terms of the agreement between M/s Uhde India Ltd and M/s RCF the burden of customs duty, if imposed, was to be passed on to RCF. Therefore, M/s RCF had as much interest in getting the consignment cleared expeditiously without payment of duty a:; did M/s Uhde India Ltd , if not more. They were also a party to giving of bribe to Shri Rakesh yadav to get the forged/ fabricated certificates. But not being the direct importers their role becomes secondary com....

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....ya Chemicals & Fertilizers Ltd to the effect that 4.34 Appellant 1 has in his appeal challenged the order of confiscation under Section 111 (o) of the Customs Act, 1962 and penalty imposed under Section 112 (a), ibid. These sections read as follows: SECTION 111. Confiscation of improperly imported goods, etc. - The following goods brought from a place outside India shall be liable to confiscation: - (o) any goods exempted, subject to any condition, from duty or any prohibition in respect of the import thereof under this Act or any other law for the time being in force, in respect of which the condition is not observed unless the non-observance of the condition was sanctioned by the proper officer; SECTION....

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....s of scope for retention of penalty under section 112 of Customs Act, 1962 once liability to confiscation has been set aside by the Tribunal. It is settled law that confiscation is qua goods - imported or exported - while penalty is qua persons, whether natural or artificial. There is no scope under Customs Act, 1962 for separate confiscation qua persons and to be determined by disaggregation of noticees to the adjudication proceedings. The show cause notice is clear and, in no uncertain terms, alleged that the goods are liable for confiscation in accordance with the manner provided in section 111(o) of Customs Act, 1962. Penalty under section 112 of Customs Act, 1962 would follow to the extent that noticees '(a)......who, in relat....