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2015 (6) TMI 652 - AT - CustomsConfiscation of goods - Smuggling of red sanders - Held that:- Appellants were not involved in the smuggling of Red Sanders for the reason that the containers were stuffed and sealed with Corrugated Boxes at ICD, Waluj under the physical supervision of the custom officers, thereafter the custodian got the control of the container. The tampering of seal, change of the goods i.e. loading and concealment of prohibited goods i.e. Red Sanders were taken place in the transit from ICD to the Nhava Sheva Port. This clearly shows that the present Appellants whose role was to arrange and provide the empty container for export goods, cannot be implicated in the act of smuggling of Red Sanders. However, the Appellants have knowingly about the Public notice No. 17/2012 not complied the KYC norms of the person Shri Rohit Mahadik who placed order for container. Employees have deliberately for their vested committed an act to make the goods liable for confiscation. From the nature of the offence committed in the present case, when the penalty is imposed on the companies, penalties on the employees are not warranted. As regard penalties on the Appellant companies, I find that in view of the role of the companies, the lapse is only confined to the non compliance of KYC and not involvement in the smuggling of Red Sanders. In view of this facts, I am of the view that the quantum of penalty on the Appellant companies are very higher side and the Appellant companies deserve reduction in the penalty imposed under Section 114(i). - However, penalty reduced - Decided partly in favour of assessee.
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