TaxTMI 
TaxTMI 
2025 (12) TMI 1078
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.... section 112(b) of the Act; 2. The impugned order confiscated goods and imposed penalties but the appeal memoranda makes it explicit that the appellants are contesting only the penalties imposed on them. Of the confiscated goods, goods worth Rs. 10,27,680/- which were imported in the name of Kool International were confiscated and an option was given to Kool International to redeem them on paying a fine of Rs. 4,00,000/-. 3. In addition, goods worth Rs. 1,12,37,600/- imported in the name of DSA Imports & Exports and goods worth Rs.1,00,75,100/- imported in the name of Prakriti Collection were absolutely confiscated since it was found during investigation that these firms did not exist at all. The impugned order does not indicate that any representation was made on behalf of either of these firms. There is also no appeal by either of these firms before us. The Commissioner also did not impose any penalty on these two firms as they did not exist. 4. The operative part of the impugned order is reproduced below: (i) the seized goods mentioned in Annexure - A1 to this order collectively valued at Rs. 10,27,680/- (market value) having assessable value of Rs. 4,11,072/- ....
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....he Customs Act, 1962 for his acts of omission & commission and abetting smuggling of the goods & wilful suppression of facts rendering the seized goods liable to confiscation under section 111 (d), (i) (l) & (m) of the Customs Act, 1962 and for evasion of duty of Rs. 1,10,371/- as per details given in Annexure A1 to this order ; (vi) penalty of Rs. 10,00,000/- (Rupees ten lacs only) is imposed on Shri Surender Kumar, r/o Flat No. 32, Popular Apartment, Sector 13, Rohini, New Delhi under section 112 (b) of the Customs Act, 1962 for his acts of omission & commission in importing goods by using IEC number of different importer and abetting smuggling of the goods & wilful suppression of facts rendering the seized goods liable to confiscation under section 111 (d), (i) (l) & (m) of the Customs Act, 1962 ; (vii) even though penalty is imposable on M/s DSA Imports & Exports, No. 33, H-Block, Gali No. 7, Raghu Nagar, New Delhi - 59 under section 112 (b) of the Customs Act, 1962 for their acts of omission & commission and abetting smuggling of goods & wilful suppression of facts rendering the seized goods liable to confiscation under section 111 (d), (i) (l) & (m) of the C....
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....ter-exporter Code Number granted by the Director General or the officer authorised by the Director General in this behalf, in accordance with the procedure specified in this behalf by the Director General: Provided that in case of import or export of services or technology, the Importer-exporter Code Number shall be necessary only when the service or technology provider is taking benefits under the foreign trade policy or is dealing with specified services or specified technologies. 8. There is no provision either the FTDR Act or any other law to transfer, lend, lease one's IEC to anyone else or to allow one person to import goods using the IEC of somebody else. This provision is well-known to anyone dealing with imports and exports. 9. The matter was investigated further and both Shri Vikas Bothra, the proprietor of Kool International who allowed his IEC to be used by Shri Surendra Kumar and Shri Surendra Kumar who had used the IEC of Kool International confirmed this arrangement between them. 10. Investigation revealed that in the same two containers in which the goods were imported in the name of Kool International, there were other goods imported in the names ....
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....d not impose it. This shows that the Commissioner found those two firms responsible for the discrepancies in their imports. Penalty cannot be imposed on the appellant also who is a different entity and who has nothing to do with the imports in the names of the other two firms. (vi) Simultaneous penalty on both Shri Bothra and his proprietorship firm Kool International is not sustainable. (vii) The statements recorded under section 108 of the Act were not put through the procedure under section 138B of the Act and hence they should not have been relied upon. (viii) No role was played by Shri Vikas Bothra in the imports. (ix) Since no Bill of Entry has been filed, no penalty is imposable under section 112. Submissions on behalf of Shri Surendra Kumar 13. Shri Abhas Mishra, learned counsel for Shri Surendra Kumar made the following submissions: (i) No effort was made to investigate the true importers M/s. DSA Import & Exports and M/s. Prakriti Collections or their owners. (ii) Statements of Shri Bothra were vague and were not put through the procedure under section 138B of the Act and therefore, cannot be used as evidence. ....
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.... to be non-existent. Nobody joined the investigation nor made any representations before the Commissioner or filed any appeals on their behalf. The Commissioner, however, imposed penalties on the appellant considering these two consignments for the reason that they were found in the same container. Such decision of the Commissioner cannot be sustained. When goods are imported, one may import a full container load (FCL) or less than full container load (LCL). In case of LCL cargo, goods belonging to two or more importers is stuffed in the same container. Such a container is akin to a shared taxi or a bus. If one is in a shared taxi or a bus, he will be responsible for what he is carrying on his person or in his luggage but will NOT be responsible if a fellow passenger carries contraband on his person or in his luggage. Likewise, if there are violations in the consignment of some other importer was also stuffed in the same container, the appellants cannot be held responsible or penalised under section 112 for acts or omissions related to such consignments. 18. Insofar as the consignment at S. No. 1 is concerned, it was confiscated under sections 111 (i), (l) and (m) read with sect....