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2017 (9) TMI 603 - HC - CustomsPenalty u/s 112(a) of the Customs Act, 1962 - mens rea - Whether the penalty on the appellant u/s 112(a) of the CA, 1962 is justified when the appellant was an employee working as executive director and he had no reason to believe that goods were liable for confiscation? - Held that: - It appears quite undisputable that the appellant had signed the necessary documents for import of goods, the goods upon import though were required to be utilized for manufacture of export product at the factory of the company, never reached the factory premises but were diverted in the local market and that the appellant was incharge of the day to day functioning of the company. Such being the facts, the involvement and knowledge of the appellant in diversion of the goods in local market is writ large on the face of the record - No perversity is pointed out in such factual conclusions. Clause(a) of section 112 of the Customs Act, provides for penalty against the person who in relation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation under section 111, or abets the doing or omission of such an act. In such a case, the penalty that could be imposed would be an amount not exceeding the value of goods or ₹ 5000/whichever is greater. Even if therefore, invoking this provision would require mens rea on the part of the noticee, the same was duly established on record. Penalty upheld - appeal dismissed - decided against appellant.
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