2026 (2) TMI 405

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....peals)] to the extent it rejects the appeal filed by the appellant against the order dated 09.09.2022 passed by the Additional Commissioner of Customs, Indore [the Additional Commissioner] that confirms the imposition of penalty upon him under section 117 of the Customs Act, 1962 [the Customs Act] 2. M/s. S.R. & Co. is engaged in the trading of gold bullion. Mitual Kumar Patel is a partner in M/s. S.R. & Co. and one, Gourav Jain, a partner in M/s. Pulak Ornaments LLP, is said to have placed an order of 69kg gold bars with a condition that the payments would be made within one or two days. Ajay Kumar and Mohammad Nisar Mew took delivery of the gold bars on 20.03.2021 and while they were returning to Indore by car, the officers of Director....

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.... iii) He has provided his vehicle to his brother Shri Gourav Jain and supported him in the said smuggling of gold. Therefore, it appears that Shri Piyush Jain is liable for penalty under Section 117 of the Customs Act, 1962." 5. The appellant filed a detail reply to the show cause notice and denied the allegation. 6. The Additional Commissioner by order dated 09.09.2022 confirmed the penalties imposed upon the appellants. 7. Feeling aggrieved, the appellant filed an appeal before the Commissioner (Appeals). The appeal was dismissed by order dated 11.03.2023 and the relevant portion of the order so far as it concern the appellant is reproduced below: "30. As regards imposition of penalty on Appellant-5 under Section ....

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....der Section 115 (2) of the Customs Act, 1962. Further, he had provided his vehicle having secret cavity for transport of foreign origin smuggled gold and thereby abated smuggling of gold, therefore, the adjudicating authority was correct in imposing penalty under Section 117 of the Customs Act, 1962." (emphasis supplied) 8. Shri Hardik Modh, learned counsel for the appellant submitted that the penalty imposed upon the appellant under section 117 of the Customs Act cannot be sustained as the vehicle could not have been confiscated under section 115 of the Customs Act. Learned counsel also raised the same contentions that were advanced on behalf of Gourav Jain in Customs Appeal No. 50647 of 2024. 9. Shri Nikhil Mohan Goyal, learned a....