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2023 (7) TMI 218 - DELHI HIGH COURTLevy of penalty u/s 112(a) of the Customs Act, 1962 - G-Card hold of customs broker - Personal penalty for abetment in evasion of duty of customs - illegal import of prohibited goods - gas cylinders and salaam mishri - mis-declaration of goods - appellant had knowledge of the import of prohibited goods or not - HELD THAT:- Indisputably, persons who have committed the acts of omission or commission in relation to goods that rendered them liable for confiscation, are liable to pay the penalty as stipulated under Section 112(a) of the Customs Act, without any requirement to establish their mal intent. However, the same principle would not apply to persons who are alleged to have abetted such acts of omission or commission. This is because, abetment, necessarily requires, at the minimum, knowledge of the offending Act. The use of the expression ‘abet’ in Section 112(a) of the Customs Act, makes it implicit that the person charged, who is alleged to have abetted the acts of omission or commission, has knowledge and is aware of the said acts. A plain meaning of the word ‘abet’ means instigation, aid, encouragement of an offence - It necessarily involves the knowledge that the act being abetted is wrong. In the context of Section 112(a) of the Customs Act, by definition, the expression ‘abet’ means instigating, conspiring, intentionally aiding the acts of commission or omission that render the goods liable for confiscation - It is apparent that the knowledge of a wrongful act of omission or commission, which rendered the goods liable for confiscation under Section 111 of the Customs Act, is a necessary element for the offence of abetting the doing of such an act. In M/S AMRITLAKSHMI MACHINES WORK, MR. N.K. BRAMCHARI, MANAGING PARTNER, M/S. AMRITLAKSHMI MACHINE WORKS VERSUS COMMISSIONER OF CUSTOMS (IMPORT) [2016 (2) TMI 57 - BOMBAY HIGH COURT] a Full Bench of the Bombay High Court had considered the aforesaid issue and held that the word ‘abetment’ is required to be assigned the same meaning as under Section 3(1) of the General Clauses Act, 1897. The penalty imposed on the appellant under Section 112(a) of the Customs Act is set aside - Appeal allowed.
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