TaxTMI 
TaxTMI 
2024 (11) TMI 1144
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.... under Section 112 (a) & (b) of the Customs Act, 1962 vide Order-In-Original No. KOL/CUS/PR COMMR/PORT/09/2021 dated 18.02.2021 issued by the Principal Commissioner of Customs (Port), Kolkata, for the alleged non-fulfilment of export obligation in respect of import of Clinker made by one M/s. Swati Udyog Private Ltd. under Advance Authorization issued by DGFT. Shri Chetan Kumar Jain, Vice President in the Concast Group of companies (hereinafter referred to as "appellant no. 2") has filed Customs Appeal 75527 of 2021 against imposition of the penalty of Rs.20,00,000/- on him, under Section 112 (a) & (b) of the Customs Act, 1962 vide Order-In-Original No. KOL/CUS/PR COMMR /PORT/09/2021 Dated 18.02.2021 issued by the Principal Commissioner of....
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....gation. On the strength of the said Authorization, SUPL imported 20000 MT Clinker vide Bill of Entry No. 7222540 dated 26.6.2012 through Haldia Port; the said Bill of Entry was assessed provisionally on furnishing of a Bond with Bank Guarantee which was furnished by the company, M/s. SUPL. It is pointed out that the condition of the Bond was that in case of failure to fulfil the export obligation, the company would make payment of the duty with interest. 3.2. The appellants submit in this regard that the company failed to make export of cement due to various business problems, though it manufactured 43839 MTs cement in their factory from June 2012 to May 2013 out of the imported clinker and sold in domestic market on payment of Central Exc....
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....aving a group of Directors; He, himself was appointed as a Director between 15.03.2011 and 25.01.2012 and Shri Chetan Kumar Jain, a professional from their group companies, held the post of a Director of SUPL from 15.03.2011 to 26.09.2013. It is submitted that both of them neither took part in any meeting conducted by the Board of Directors nor interfered in any decision of the company. The appellants further submitted that one of their group companies, namely, M/s Concast Global Ltd. placed an order for 20000 MTs Clinker to an overseas seller M/s. Rainbow Vietnam Joint Stock Company at the request of Shri Amit Kejriwal, the promoter of M/s SUPL; that the said consignment was sold as such to M/s. Swati Udyog Pvt. Ltd. on High Sea Sale basis....
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....ces of the case, we observe that appellant no. 1 is the CMD of Concast Group of Companies and his company invested in M/s. SUPL by buying its shares. After of acquisition of 51% of the company's shares, he was appointed as a Director of SUPL between 15.03.2011 and 25.01.2012. Appellant No. 2, Shri Chetan Kumar Jain, a professional from their group companies, held the post of a Director of SUPL from 15.03.2011 to 26.09.2013. The appellants claimed that they never took part in any meeting conducted by the Board of Directors and they never interfered in any decision of the company SUPL. We also observe that there is no finding in the impugned order about the role played by the appellants in the alleged offence. We observe that penalty has ....