TMI Blog2015 (6) TMI 614X X X X Extracts X X X X X X X X Extracts X X X X ..... and ₹ 5,00,000/- on the appellants exceeding ₹ 1,00,000/- is beyond the powers vested under Section 117 of the Customs Act. - appellants are liable for penalty under Section 117 of the Customs Act, maximum of ₹ 1,00,000/- on each appellant. The penalty imposed by the adjudicating authority in excess of ₹ 1,00,000/- is liable to be set aside on both the appellants. - Decided partly in favour of appellant. - C/94-95/2010 - Final Order Nos. 40349-40350/2015 - Dated:- 23-3-2015 - R. Periasami, Member (T),JJ. For the Appellant : Mr Shiv Shankar (Co. Associate) Mr A Mohd. Ismail, Adv For the Respondent : Ms Indira Sisupal, AC (AR) ORDER Per: R Periasami: Both the appeals are arising out of a c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... djudicating authority has imposed ₹ 10,00,000/- and ₹ 5,00,000/-. He further relied para-24 of the order-in-original wherein it was clearly brought out that the entire modus operandi was carried out between the exporter R. Viswanathan and Shri Sivakumar, the clerk of the CHA company. The clerk had deliberately connived with the exporter and signed all the documents and also MOT. The CHA was not involved and the Shipping Bills were filed in their name. They have co-operated with the investigating agency and customs. He also submits that no action initiated under CHALR by the department. Regarding imposition of penalty on the CHA firm as well as on the partner they relied the decision of the Hon'ble High Court of Gujarat in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rietor of the firm Shri R.Viswanathan. Since the department invoked only Section 117 of the Customs Act for imposition of penalty on CHA and on the partner of the CHA firm, and this section relates to imposition of penalty not expressively provided elsewhere and the maximum penalty is not exceeding ₹ 1,00,000/-. 8. Prima facie, I find that under adjudicating authority has imposed penalty of ₹ 10,00,000/- on M/s. Manohar Enterprises and ₹ 5,00,000/- on Shri.R. Muthuramalingam, under Section 117 of the Customs Act. Therefore, by virtue of limitation provided under Section 117 adjudicating authority has no power to impose more than the limit specified under the section 117 of the Act, Therefore, imposition of penalty of &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es having chosen to invoke only Section 117 penalty on the appellant and the adjudicating authority can impose maximum penalty of ₹ 1,00,000/. 10. As regards the second appellant's contention that penalty is already imposed on their CHA firm, and no penalty can be imposed again on the partner of the CHA firm. They relied on the decision of the Hon'ble High Court of Gujarat in the case of Pravin.N.Shah Vs. Cestat (supra). The above Hon'ble High Court order relates to Section 11AC penalty under the Central Excise Act and the same is not applicable to their case. The very fact that Section 117 has been invoked, each notice is liable for penalty or it is a residual nature for any contravention not specified. Therefore, I ho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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