TaxTMI 
TaxTMI 
2025 (6) TMI 371
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....Depot, Tughlakabad the Commissioner to the extent it imposes penalty of Rs. 10 lakhs upon the appellant under section 114 (iii) of the Customs Act, 1962 the Customs Act. 2. M/s Colour Cottex Pvt Ltd. Colour Cottex is engaged in the manufacture and export of Ready Made Garments. It entered into contracts for supplying Ready Made Garments the Goods with Lagoon Trading LLC, Lagcy Trading LLC, and Royal Readymade Garments based in U.A.E. To encourage exports to remote markets, the Government introduced the Focus Market Scheme FMS, designed to offset higher freight costs borne by buyers. Under the FMS, exporters often offer reduced prices to customers in designated countries like Panama. This approach ensures competitiveness by partially absorb....
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....Shipping in his statement dated 11.08.2017 made under section 108 of the Customs Act admitted that Rajesh Dhandha, Director of Colour Cottex had instructed him to divert the container to Jebel Ali and, accordingly, he had instructed Safewater Lines (the appellant), an intermediate freight forwarding agency, to divert the container to Jebel Ali. The Deputy Manager (Finance) of Safewater Lines in his statement dated 17.04.2017 recorded under section 108 of the Customs Act stated that Safewater Lines had further directed the Evergreen Shipping Agency to change the destination of the said container from Panama to Jebel Ali. The Assistant Manager (Finance and Supervising) of Evergreen Shipping Agency in his statement dated 23.03.2017 recorded un....
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....in this appeal is whether penalty under section 114(iii) could have been imposed upon the appellant. 7. Before examining this issue, it would be pertinent to state that the Commissioner has found as a fact that the goods exported through the 211 shipping bills were liable for confiscation under section 113(d), (g) and (i) of the Customs Act. This finding has been recorded for the reason that the goods were diverted to Jebel Ali, though they were to be delivered at Panama and this was done wilfully by Colour Cottex with the help of Imran Mirza, Safewater Lines and the appellant. It needs to be noted that the impugned order has been passed in respect of Color Cottex, Imran Mirza, Evergreen Shipping Agency and Safewater Lines (the appellant).....
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....ivered the container at Jebel Ali on the directions of Safewater Lines. Safewater Lines, in its defense stated that it had instructed Evergreen Shipping Agency to divert and deliver the container at Jebel Ali on the instructions of M/s Concorde Shipping, a Freight Forwarding Agency. 10. Penalty has been imposed on the appellant holding that the appellant assisted and connived with Imran Mirza, Proprietor of Concorde Shipping Agency and the exporter in diverting the container containing the export goods covered under subject five shipping bills. 11. Section 114 (iii) of the Customs Act provides that any person who, in relation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation und....