TMI Blog2014 (4) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... cation. Penalties imposed on the CHA and the proprietors of CHA, I find that the Adjudicating Authority has specifically recorded that one Shri Malleshwar Rao is the master mind of the entire fraud committed on the Revenue. There is nothing on record which indicates that the CHA or power of attorney holder or the proprietor of CHA were aware the actions of the individuals who committed the fraud. It is on record that Shri Malleshwar Rao committed the fraud for his personal gain. In my view penalty imposed on the appellant who are CHS or Power of Attorney holders or authorised signatories or proprietors does not arise, hence that portion of the order is unsustainable and is being set aside. Storage terminal have not put in place the correct system for clearance of warehouse goods, in as much as they have allowed clearance of warehoused goods based on photo copy of the duty paying Bill of Entry which is not in accordance with the rules and regulations. To that extent the storage terminals have contravened the provisions of the Customs Act 1962 and the Rules made there under. In my view Storage Terminals having not put in place the correct system due to which warehoused goods we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s herein and imposed penalties on them. For brevity sake, I categorize the appellants as importers their employees, Storage terminal and their employees, CHA s or employees of CHA. I. IMPORTERS Rep. 1. M/s Pel Enterprises Ltd- 2. M/s Pel Oils and Solvents Ltd- 3. M/s Bharat Resins Ltd, Shri S J Vyas (Adv.) 4. M/s Super Chemicals , Shri Anand Nainavati (Adv.) 1. STORAGE TERMINALS 1. M/s United Tank Terminals Ltd, Shri Hardik Modh (Adv.) 2. Shri Nachikep Deepakbhai Antani, Employee of M/s United Tank Ter. 3. M/s JR Enterprises- 4. Shri Neeraj Morari Lal, Employee of M/s J R Enterprises 5. M/s J K Synthetics Ltd- 6. Shri Rajesh Soni ] Shri P V Seth (Adv.) 7. Shri Govind Prakash Agarwal ] 2. CHA EMPLOYEES 1. Shri Jayesh Mistry Authorised Signatory of CHA 2. M/s Kiran Shipping Pvt Ltd -3. Shri Mahesh Gupta Employee of M/s Kiran Shipping 4. Shri M/s Rishi Kiran Roadlines 5. Shri Manikandan K P Employee of M/s Bight Enterprises 6. Shri T A Vasudevan Power of Attorney of CHA 7. Shri Kishor Una ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Representative would submit that the Adjudicating Authority has correctly brought out roles played by the importers, storage terminal and individuals in the massive fraud. He would then read provisions of section 147 (3) Customs Act 1962 and submit that that the importers are liable to the penalised, person who had master minded the fraud is of employees of CHA, forging the signatures of the customs authorities. As regards the penalty on storage warehouse terminals and their employees, it is the submission that they have been also correctly penalised as instead of clearing the warehoused goods on duplicate ex-bond Bill of Entry they have cleared warehouse consignments on three photocopy of duplicate copy of ex-bond Bill of entry, very well knowing that such clearance are not permitted. He would rely on the judgment of the Apex Court in the case of Essar Oil Ltd 2004(172)ELT.433 for imposing penalties on the officials for fraudulent declaration to evade payment of duty. 9. I have considered the submissions made at length by both sides and perused records. 10. The Adjudicating Authority has imposed penalties on all the appellants under Section 111 (a) of the Customs Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LT.117 (Tri.Bang.) 2. M/s Hetero Drugs Ltd vs. Commissioner of Customs, Chennai 2004 (168)ELT. 211 (Tri. Bang.) 13. As regards the penalties imposed on the CHA and the proprietors of CHA, I find that the Adjudicating Authority has specifically recorded that one Shri Malleshwar Rao is the master mind of the entire fraud committed on the Revenue. There is noting on record which indicates that the CHA or power of attorney holder or the proprietor of CHA were aware the actions of the individuals who committed the fraud. It is on record that Shri Malleshwar Rao committed the fraud for his personal gain. In my view penalty imposed on the appellant who are CHS or Power of Attorney holders or authorised signatories or proprietors does not arise, hence that portion of the order is unsustainable and is being set aside. 14. As regards the penalties imposed on the storage terminal, I find that the said storage terminal cannot be visited with penalty under section 112 (a) and Customs Act 1962 for the simple reason that the storage terminals had allowed the goods to be cleared from their custody based upon a document which was a photocopy and which indicated discharge of the cu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
