2025 (6) TMI 2047

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....ppellant is the Director of M/s. Dharmanandan Diamonds Private Limited, Mumbai, which is engaged in the manufacture and sale of cut and polished diamonds. The said company imports rough diamonds from foreign countries and after carrying out processes such as cutting and polishing on rough diamonds, exports the same to countries like Israel, USA, Hong Kong, Belgium and UAE. 3. The Directorate of Revenue Intelligence (DRI), Surat, initiated investigations against M/s. Chirayu Impex Private Limited and M/s. Amrapali Exim Private Limited (importers) on the alleged premise that they had imported cut and polished diamonds by mis-declaring the same as broken diamonds, without payment of applicable Customs duties by classifying the same under Ch....

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....the appellant's company had cropped up during the course of enquiry, a statement of Shri Naresh Bhavsar, Senior Account of the appellant's company, was recorded on 11.04.2014 wherein he stated that the appellant's company had exported three to four consignments of cut and polished diamonds brought by Shri Punabhai Patel, weighing around 2000 carats, as a broker. 4.2. Subsequently, the statement of the appellant was also recorded wherein he stated that after examination of the cargo the goods had been exported. 5. After the investigation, a Show Cause Notice was issued to the appellant for confiscation of the export consignment under Section 113 of the Customs Act, 1962 and to impose penalty under Section 114 of the Act. 6. The said....

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...., he points out that there is no mens rea on the part of the appellant and accordingly, imposition of penalty under Section 114 of the Act is not warranted in this case. 9. On the other hand, the Ld. Authorized Representative of the Revenue supported the impugned order. 10. Heard the parties and considered their submissions. 11. We find that in this case, a penalty of Rs. 5,94,096/- has been imposed on the appellant, under Section 114 of the Customs Act, 1962, without confiscation of the export consignment of the appellant. In these circumstances, we find that penalty under Section 114 of the Act is not imposable. 12. Further, we take note of the fact that there is no allegation against the appellant that the appellant was engag....