9911796707
TMI Blog2008 (1) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of Le Designco; the cash deposited into these accounts represented sale proceeds of raw silk sold by Shri Javed Alam through Shri Subhash Gupta and Shri Jivraj S.Rathi although the sale of the raw silk which was imported against non transferable QABL was not permissible as export obligation was not fulfilled; and that the appellant had aided and abetted in selling of the exempted raw silk imported against 9 Advance Licences issued by Le Designco prior to the fulfillment of export obligation which was in contravention of provisions of EXIM policy 1992-97 and Notification No.204/92-Cus. Show cause notice dated 14.7.1998 was issued to the appellant proposing imposition of penalty. The sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e expression "in any other manner dealing with any goods" must relate to physical contact with the goods is relevant. In this case, the appellant has not physically dealt with any goods and therefore, penalty cannot be imposed upon him under Sec. 112(b) in the light of the above decision. The decision in the Godrej Boyce & Mfg.Co.Ltd. has been affirmed by the Larger Bench of the Tribunal in the case of Steel Tubes of India Ltd & Ors vs CCE, Indore [2007(83) RLT 378] wherein it has been held that for the purpose of imposition of penalty under Rule 209A of the C.Ex.Rules, 1944 a person must have dealt with goods physically and must have knowledge that the goods were liable to confiscation and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Sec.112 provides for imposition of penalty on a person who acquires possession of or is in any way concerned in carrying, removing, depositing, harbouring, depositing, keeping, concealing, selling or purchasing or in any other manner dealing with any goods which he knows or has reason to believe are liable to confiscation under Sec.111. In other words, only if goods are liable to confiscation under Sec.111 of the Customs Act, 1962, the question of imposition of penalty arises, subject to satisfaction of other conditions under the provisions of Sec.112. 4. In the light of the above discussion and following the ratio of the Larger Bench decision cited supra, we set aside the penalty im ..... X X X X Extracts X X X X X X X X Extracts X X X X
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