2025 (9) TMI 416

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....d the order-in-original dated 9.1.2014 passed by the Additional Commissioner in which he had decided the proposals in the show cause notice dated 25.10.2012 [SCN] issued by the Directorate General of Revenue Intelligence [DRI] to eight noticees including the respondent herein Shri Mukesh Singhania. 2. During the relevant period (2012-13), two exporters viz., M/s. Century Knitters (India) Ltd. and M/s. Rajesh Hosiery Mills Pvt. Ltd. exported readymade garments under five shipping bills each. Suspecting that the Free on Board [FOB] values of the goods were mis-declared in these shipping bills, DRI investigated the matter and issued the SCN. The role of the respondent Shri Mukesh Singhania as per the SCN and the impugned order was that he h....

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....atrix of the Section 114AA does not cover the issue of abetment. Therefore, the penalty imposed on the appellant under Section 114AA is required to be revisited with reference to quantum imposed also. The main exporter has been imposed a penalty of Rs. 5 lakhs, but supplier has been slapped with a penalty of Rs. 50 lakhs only. 16. I find that the amount of Rs. 29,43,000/- was seized by DRI as sale proceeds under Section 121 of the Customs Act, 1962 which stands appropriated by the adjudicating authority in the impugned order. Section 121 of the Customs Act, 1962 reads as under :- "Where any smuggled goods are sold by a person having knowledge or reason to believe that the goods are smuggled goods, the sale-proceed....

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....stic transaction. Section 114AA of the Act reads as follows: SECTION 114AA. Penalty for use of false and incorrect material. - If a person knowingly or intentionally makes, signs or uses, or causes to be made, signed or used, any declaration, statement or document which is false or incorrect in any material particular, in the transaction of any business for the purposes of this Act, shall be liable to a penalty not exceeding five times the value of goods". 8. The respondent did not make any declaration before the customs nor was it required to do so because it was neither an importer nor an exporter. Revenue's assertion that section 114 AA of the Act would apply to the respondent cannot be accepted by any stretch of interpretati....