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2015 (2) TMI 379 - AT - CustomsImposition of penalty u/s 112 - illegal imports of the goods which were diverted into domestic market without payment of duty - Held that:- Imports has been made duty free and the goods have been diverted into domestic market which were not required so by the importer. Therefore, it is an admitted case of fraud played by the importers. But we find in this case for the imports made from through ICD, TKD the purchasers of the imported gods approached to the Settlement Commission and settled the case there. We also find that Shri Virender Bansal the appellant also approached to the Settlement Commission but the Settlement Commission passed the following order for the reasons given above the Bench in exercise of Commissions powers under Section 127-I of the Act sends the case with regard to the applicant Shri Virender Bansal back to the proper officer who shall dispose of the same in accordance with the provisions of the Act as if no application under Section 127B of the Act had been made by the said applicant. As the observation of the Settlement Commission is that Shri Bansal had no way approached the Settlement Commission. Therefore the case of Shri Bansal is equated with the other appellants before us. If the case has been settled before the Settlement Commission, the proceedings against all the co noticees come to an end. Therefore, it was held that penalties not imposable under Section 112 of the Customs Act. In these circumstances, following the decision of S.K. Colombowala (2007 (7) TMI 514 - CESTAT, MUMBAI) we hold that for the imports made through ICD, TKD the penalties on the appellants are not imposable. - appellants before us were not the parties to the imports made through Mumbai port. As the appellants were not the parties to the Show Cause Notice, therefore, the question of imposing penalty on the appellants do not arise. - for the imports made through Mumbai port, the appellants are not to be penalised. - Decided in favour of assessee.
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