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2018 (1) TMI 499 - AT - CustomsPenalty u/s 114 (1) and Section 117 of the CA, 1962 - smuggling - red saner logs - prohibited goods - Held that: - the appellant has violated the provisions of Section 114 (1) of the Act as they omitted to take due care for transit of the declared cargo - taking note of the fact that there is no allegation of direct involvement of the appellants in the offence, the penalty of Rs. Two lakhs imposed is on the higher side and requires to be reduced - the penalty imposed on M/s. SEC Services Ltd., reduced to ₹ 50,000/-. Penalty on M/s. Bhavani Shipping Services (I) Pvt. Ltd., and M/s. Seaport Lines - allegation is that they did not obtain KYC details of the client - Held that: - The Regulations require to obtain KYC of the client. M/s. Bhavani Shipping Services India Pvt. Ltd. is a shipping liner and they did not have any direct transaction with the exporter. Their immediate client was Ms/. Sea Port Lines (India) Pvt. Ltd. and they have produced the KYC details of M/s. Sea Port Lines (India) Pvt. Ltd. - In Scope Amra Logistics (I) Pvt. Ltd. Vs. CCE [2015 (6) TMI 652 - CESTAT MUMBAI] it was held 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) - penalties imposed on M/s. Bhavani Shipping Services (I) Pvt. Ltd. and M/s. Seaport Lines (I) Pvt. Ltd. set aside - the confiscation of the container in the present case is unjustified and requires to be set aside. Appeal allowed in part.
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