2006 (12) TMI 152

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.... that the goods are in violation of import of law is pre-requisite for imposition of Redemption fine?" 2. A show cause notice was issued requiring the respondents to show cause why action be not taken against them for purchasing and dealing in any manner with the goods which is liable to penal action under Section 111 of the Act. 3. After considering the stand of the respondents, the Adjudicating Officer passed the following order :- "I order confiscation of the machines appearing at Sr. Nos. 7, 8, 16, 28 and 29 of annexure to the show cause notice seized from the factory premises of the following parties under Sections 111(d) and 111(o) of the Customs Act, 1962. However, in exercise of the powers conferred on me under Section 125 of the....

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....s valued at Rs. 55,50,000/- seized from the premises of M/s. Kiwi Knitters, M/s. S.P. Shawls, M/s. New Quality, Khatta of Kuldip Suri, Khatta taken on rent by Venus Industries, M/s. Nemo Fabrics, M/s. Ruby Knitters and Khatta of Smt. Parvati Devi (mentioned at Sr. Nos. 2, 3, 4, 5, 9, 10, 11, 12, 13, 14, 15, 19, 20, 21, 22, 30 and 31 of the annexure to the show cause notice) are ordered to be vacated. I impose a personal penalty of Rs. 15,00,000/- (Rs. Fifteen Lakh only) on Sh. Kamal Kapoor and Rs. 5,00,000/- (Rs. Five Lakh only) on Sh. Krishan Kapoor under Sections 112(a) and 112(b) of the Customs Act, 1962. Impose a personal penalty of Rs. 1,50,000/- (Rs. One lakh and fifty thousand only) on Sh. Kuldip Singh under Section 112(b) of the C....

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....e quantum of penalty as regards respondents No. 1 and 2 to be excessive and accordingly, reduced the same. As regards, respondents No. 3 to 9, herein, who were appellant No. 3 to 9 before the Tribunal, it was held that they were bona fide purchasers of the machines without knowing ineligibility of the seller and in absence of any mens rea no penalty qua them. 6. Order of penalty qua M/s. Ambaji textiles and M/s. Venus Industries has been upheld by the Tribunal. 7. No question arises qua respondents No. 1 and 2, against whom, penalty has only been reduced in the discretion of the Tribunal. 8. As regards, respondents No. 3 and 9, it has been found that they were bona fide purchasers without any knowledge of ineligibility of the sellers. H....