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2015 (10) TMI 1720 - AT - CustomsDuty free goods diverted to local market Imposition of penalty Importer imported Polyester fabrics without payment of duty, for manufacturing finished goods to be exported During investigation, it was found that importer diverted duty free imported material in local market Show cause notice was issued to importer and Appellant By impugned order, adjudicating authority confirmed demand of Customs duty alongwith interest and imposed penalty of equal amount of duty on importer and Appellant Held that:- Appellant-1 was main architect of fraud for diversion of duty free goods in local market He has admitted in various statements that he had involved in diversion and delivery of duty free materials to buyers as well as procurements these goods from Dubai based suppliers Appellant-2(broker) accepted that he had arranged sale of duty free material to buyers without any bills or invoices He may get sum of as commission and therefore, quantum of penalty upon him is excessive Regarding imposition of penalty on buyers for purchase of duty free goods from importer illegally without any bills and invoices and payment made in cash, it is clearly evident that buyers had knowledge that goods were not duty paid and imposition of penalty is warranted Therefore, imposition of penalty on appellant-1 confirmed while penalty on other appellants are reduced Appeal disposed of.
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