TaxTMI 
TaxTMI 
2025 (5) TMI 1930
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....oms Commissionerate, Mumbai had developed an intelligence that some unknown persons are bringing consignments of foreign brand cigarettes from North-East to Mumbai, which were earlier smuggled into India from Myanmar, and these cigarettes do not conform with the legal requirements under Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 ('COPTA' for short) and the relevant rules made under such Act of 2003. On the above basis, AIU Customs had intercepted one consignment covered under airway bill No.098-30900284 consisting of 10 packages weighing 450 Kgs. which had arrived at Mumbai by flight number Air India 676 from Kolkata and was lying at Air India Domestic Terminal. The name of consignee for said consignment was shown as 'Shri Sarup Singh'. 2.3 On close monitoring of the said consignment, the AIU Customs had intercepted one Shri Sarup Singh and Shri Manish Naobat Ram Gupta, owner of Shri Om Sai Logistics, who had come to receive the said imported consignment. In presence of panch witnesses and Shri Sandesh Narkar, Deputy Manager of Commercial department of Air India, the imp....
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....had absolutely confiscated the imported foreign cigarettes along with its packing material and imposed penalty of Rs.3,50,000/- on Shri Sunil Subrammanian, as a passenger under Section 112(a) and 112(b) of the Customs Act, 1962. Further, he imposed penalty of Rs.1,50,000/- on Shri Suneesh A.K.; Rs.50,000/- on Shri Sarup Singh Rs.2,00,000/- on Shri Manish Naobatram Gupta; Rs.1,50,000/- on Shri Mahendra Shaw; Rs.1,50,000/- on Shri Bharat Ram, as passengers under Section 112(a) and 112(b) of the Act of 1962, vide Order-in-Original dated 13.03.2018. Being aggrieved with the original order, the appellants had filed an appeal before the Commissioner of Customs (Appeals), who by upholding the order of the original authority had rejected the appeals filed by the appellants vide Order-in-Appeal dated 29.03.2019 which is impugned herein. Feeling aggrieved with the impugned order, the appellants have filed these appeals before this Tribunal. 3. Heard both sides and perused the case records. The additional submissions made in the form written paper books in this case was also perused carefully. 4. The short issue for determination before the Tribunal is whether the imposition of penal....
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....e its smuggling, then such goods are liable for confiscation under Section 111(i) ibid. 6. The relevant legislative provisions containing restrictions on import or export of goods are specified in the ITC-HS item wise import policy of Foreign Trade Policy issued under the Foreign Trade (Development and Regulation) Act, 1992. The extract of the relevant item wise ITC-HS for the impugned goods are given below : On combined reading of the ITC-HS policy conditions for cigarettes and the provisions of COPTA, it is very clear that imports of cigarettes are subject to the regulations framed under COPTA inter alia for display of pictorial warnings and other statutory information to be mentioned in the package containing cigarettes. These provision shall also apply to the licit of import of cigarettes. 7. It is a fact on record that in respect of the imported cigarettes, these have been imported in violation of COPTA and import policy, inasmuch as the packages of the cigarettes do not contain or display the requisite mandatory details. Therefore, in my considered opinion there is clear violation of the provision of Section 111(d) of the Customs Act, 1962 in the present case. 8.1....
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....to Mumbai in the said consignment. Therefore, it is clear that the imported goods in the present case though having contravened the provisions of Section 111(d) ibid and Section 111(i) ibid, it cannot be said that the appellants are the 'passengers' to saddle with the penalty for having done any act or omission to do any act under Section 112(a) ibid. On the other hand, since the appellants have received the foreign origin cigarettes in the past cases and in the present case, were about to receive the same for distribution or sale in an illegal manner, they are rightly liable for imposition of penalty under Section 112(b) ibid. To the above extent, I find that the impugned order confirming the adjudged demands of penalty under Section 112(a) ibid on the appellants is legally not sustainable. 9. In view of the above discussions, I am of the considered view that the penalty imposed on the appellants in the original order dated 13.03.2018 and confirmed in the impugned order dated 29.03.2019, is reduced to the extent of Rs.1,75,000/- on Shri Sunil Subrammanian, and Rs.75,000/- on Shri Suneesh A.K., being the penalty imposable under Section 112(b) of the Customs Act, 1962 for their r....
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....India from a place outside India; Document 2 6. No person shall sell, offer for sale, or permit sale of, cigarette or any other tobacco product- Prohibition on sie of cigarette ar other Sobasce prod- AB 1D & pir- ton below the age of eighteen years and in particular area. (a) to any person who is under eighteen years of age, and (b) in an area within a radius of one hundred yards of any educational institution. 7. (/) No person shall, directly or indirectly, produce, supply or distribute cigarettes or any other tobacco products unless every package of cigarettes or any other tobacco prod- wcts produced, supplied or distributed by him bears thereon, or on its label, the specified warning including a pictorial depiction of skull and cross bones and such other warning as may be prescribed. Restricdous on trade commerce in. and produc- tion, supply sod distribe- tion of cigs reries and other tobacco prod- (2) No person shall carry on trade or commerce in cigarettes or any other tobacco products unless every package of cigarettes or any other tobacco products sold, supplied or distributed by him bears thereon, or on its label, the specified warning. (3') No pers....