TaxTMI 
TaxTMI 
2026 (5) TMI 1040
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....refore, the Appellant is aggrieved with summarily setting aside of such exoneration by Ld. Commissioner of Customs (Appeals). 2. The Department had filed appeal for setting aside the said Order-in-Original dated 13.09.2024 with prayers to decide the points and to examine correctness of Order-in-Original, inter alia, in respect of allegedly ignoring the role of the Appellant and not imposing any penalty on him in the instant case. 2.1. Vide the impugned common Order, the Ld. Commissioner of Customs (Appeals) has remanded the matter back to Adjudicating Authority for fresh adjudication without recording any reason for reconsideration of the exoneration of the Appellant. 3. The Learned Counsel appearing for the appellant had invited attention to the records and the written submissions filed by the Appellant in support of the appeal. 4. In response to the instant Appeal, the Department has filed its written response in two parts and has also filed a compilation of judgments. The contents of the same are reproduced in the separate Order in Appeal no. C/50352/2026 filed by the passenger namely, Mr. Yamal Manojbhai Jagada. 5. Findings recorded in the separate Order in Appea....
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....d for confiscation of seized smuggled goods, and liability for penalties proposed on the Appellant. It also relied upon online retail sale price of Jacob & Co., various Invoices and communications for the purpose of ascertaining valuation of seized watches, forensic - WhatsApp chats and other details. 7.1. Regarding the role of the Appellant the SCN alleged that: - "35.1 Role Played by Mr. Hiren VithaldasDhakan: - ln the entire modus operandi being maneuvered between the syndicate smuggling the High-End watches Mr. Hiren VithaldasDhakan @ Mr. Hiren Dhakan has been found to be mastermind of the entire syndicate. It was Mr. Hiren Dhakan who directed Mr. Yamal ManojbhaiJagada to carry and attempt to clear impugned goods through Indian Customs without paying applicable customs duty. A number of evidences in the form of whatsapp chats have been unearthed from the mobile phone of Mr. Yamal, during the investigations, which has clearly proved connivance of Mr. Hiren Dhakan in the entire modus operandi which was cleverly designed to dodge the Govt. Had the officers of customs at IGI Airport not been observant and busted this racket, the evasion of huge customs duty, by the way ....
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....s Act, 1962 for his acts of abetment/omission or commission in the smuggling of seized goods vide Seizure Memo dated 04.10.2022" .... Role of Mr. Hiren Vithaldas Dhakan 7.11 Vide Show Cause Notice dated 31.03.2023, penalties under Section 112(a) alongwith 112(b) (ii), (iii) & (iv) and 114AA of the Custom Act, 1962 have been proposed on Mr. Hiren Vithaldas Dhakan for his acts of abetment / omission or commission in the smuggling of seized goods vide Seizure Memo dated 04.10.2022. 7.11.1 In the legal proceedings before the Customs authorities, Noticee No. 1 initially made a statement identifying Mr. Hiren Vithaldas Dhakan as the actual owner or the beneficiary of the goods that had been seized by customs officials. The initial declaration was made during an interrogation by the Customs Officers. However, Noticee No. 1 later retracted this statement in his petition W.P. (Crl) 2363 of 2022 before Hon'ble High Court of Delhi, asserting that his admission was not made voluntarily but was rather a result of coercion. During the process of crossexamination, Noticee No. 1 maintained that he had been forced into admitting that the watches in question belon....
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....ry & Watch, gave a statement on 07.11.2022. Mr Merchant clarified that the specific watch model, Jacob & Co (Model: BL115.30) has been purchased by him from M/s Jacob & Co and subsequently sold to Mr. Hiren Vithal Das Dhakan in cash. Additional Mr. Yamal Manojbhai Jagada, who had earlier implicated Mr. Dhakan, retracted his stated in his petition W.P. (Crl) 2363 of 2022 before Hon'ble High Court of Delhi. This retraction combined with the absence of substantial or corroborative evidence linking Mr. Dhakan to the smuggling activities, meant that the claims against him could not be substantiated. Consequently, there is no reliable evidence on record to support the assertion of Mr. Dhakan's involvement in the case. 7.11.5 Given the review of the statements and the evidence presented, I am of the opinion that Mr. Hiren Vithal Das Dhakan should not be subjected to any penalties under Section 112 and 114AA of the Customs Act, 1962. The decision to not penalize Mr. Dhakan is based on the lack of substantial and corroborative evidence linking him to the alleged smuggling offenses. Due to absence of credible evidence supporting his involvement in the smuggling activity constrains f....