CESTAT reduces Penalty from Rs. 1 crore to 1 Lakh in Rough Diamond Smuggling case

Jorabhai Valabhai Rabari Desai Vs C.C. Ahmedabad (CESTAT Ahmedabad)

Shri Jorabhai Valabhai Rabari @ Desai and Shri Premabhai Jethabhai Attya @ Patel (hereinafter referred to as ‘the Appellants‘) have filed Appeals against the impugned O-I-O NO. AHM-CUSTM-OOO-COM-004-2018-19 dated 25-04-2018 issued by the Principal Commissioner of Customs, Ahmedabad wherein a Penalty u/s 112(b) of Customs Act 1962 of Rs. 17,01,313/-[each]is imposed on Appellants Shri Jorabhai and Shri Premabhai.

2. Brief facts of the case of Revenue are that the officers of DRI acting on a specific information, intercepted Appellants Shri Jorabhai and Shri Premabhai on 22.4.2011 at Surat and recovered 48637.525 carats of Rough Diamonds of Zimbabwe origin valued at Rs. 10,16,68,077/- (market value). There was no duty on Import of Rough Diamonds. However, import of Rough Diamonds were restricted and its import should be accompanied by Kimberley Process Certificate. The Kimberley Process Certificate identifies a shipment of Rough Diamonds in compliance with requirements of the law. Since Appellants were not having KPCs, Rough Diamonds were seized by DRI officers. After investigation, SCN dated 10.10.2011 was issued proposing confiscation of the seized Rough Diamonds and proposing imposition of penalties u/s 112(b) of Customs Act 1962 on Appellants Jorabhai, Premabhai and others including shri Narendra Raval, owner-cum-supplier of seized Rough Diamonds. Vide O-I-O No. 18/COMMR/2012 dt. 02-11-2012 by Commissioner of Customs, Ahmedabad had ordered absolute confiscation of the seized Diamonds wt. 48,637.525 carats valued at Rs. 10,16,68,077/-, u/s 111(d), 111(l) and 111(m) of Customs Act, 1962 and had imposed Penalty of Rs. 1,00,00,000/- (each) on S/shri Jorabhai, Premabhai and Narendra Raval for offence in connection with diamonds seized on 22-04­2011. Aggrieved by penalty imposed, These appellants had filed Appeal Nos No. C/10191/2013 AND 10192/2013-DB, wherein as directed in Stay Order No. M/10979 & 19780/WZB/AHD/2013 dt. 25-02-2013, these appellants deposited Rs 7,50,000/- [each] and compliance to Stay Order was submitted. This Tribunal vide Order No. A/10497-10498/2016 dated 17-05-2016have ordered that “on the basis of the value fixed by the experts, and the role of the appellants, the quantum of penalty should be re-quantified”. In fresh proceedings, seized rough diamonds were revalued at Rs. 1,70,01,313/-and vide O-I-O NO. AHM-CUSTM-OOO-COM-004-2018-19 dated 25-04-2018 issued by the Principal Commissioner of Customs, Ahmedabad, the seized rough diamonds are confiscated absolutely and a Penalty u/s 112(b) of Customs Act 1962 of Rs. 17,01,313/- eachhas been imposed on these 2 Appellants. Hence, Appellants are before this Tribunal against penalty. Appeal Nos C/12103/2018-SM and C/12104/2018-SM were taken up for regular virtual hearing on 15-04-2021 for final disposal of the Appeals.

Please become a Premium member. If you are already a Premium member, login here to access the full content.