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2019 (9) TMI 30 - AT - CustomsLevy of penalty - filing of the shipping bill fraudulently in the name of appellants - appellants before us are neither the exporters/ owners of the goods - Export of Red Sanders Wood Logs - absolute confiscation - imposition of Section 114 & 117 of the Customs Act, 1962 - HELD THAT:- From plain reading of Section 114, it is evident that the said section is applicable only in respect of a person who has in relation to any goods omitted to do any act, the omission of which would have rendered the goods liable for confiscation under Section 113 of the Customs Act, 1962 - Since in the present case, we do not find anything ascribed to any of appellant as an act of commission or omission which would have rendered the goods liable for confiscation under section 113 of the Customs Act, 1962 - The show cause notice and the order in original have proceeded to impose penalties on the appellants not for abetting or for any act of omission or commission leading to confiscation of goods as per section 113 of the Customs Act, 1962. Penalties u/s 114 of CA - HELD THAT:- Not even investigations reveal that the appellants have not acted in manner expected of them in normal course of business to facilitate the fraud being perpetuated by the fraudsters - In absence of any such charge or finding in the impugned order, that any of appellant has deliberately knowingly or unknowingly assisted in commission of fraud by the fraudsters, we are not in position to uphold the penalties imposed under Section 114 of the Customs Act, 1962 - Penalty set aside. Penalties u/s 117 of Customs Act, 1962 - HELD THAT:- Penalty under Section 117, could have been imposed only in cases where the Custom Act, do not prescribe for imposition of penalty under any other provision. Once we have set aside the penalties under Section 114, we proceed to examine the penalties imposed under Section 117. In fact the Commissioner in his order have observed that appellants on whom the penalties under section 117 have been imposed were negligent in some manner in fulfilling the statutory responsibilities in the manner in they should have been done - the penalties imposed under is necessary to deter appellants and signal to them to be more careful while conducting their business in relation to imports and exports of goods - Penalty upheld but quantum reduced. Appeal allowed in part.
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