Case Law Details
Sandeep Garg & Company Vs C.C. Jamnagar (Prev) (CESTAT Ahmedabad)
CESTAT Ahmedabad held that imposition of penalty under section 112(b) of the Customs Act, 1962 on the proprietorship firm without even recording the statement of the proprietor of the firm is unsustainable and liable to be quashed.
Facts- The appellant is a Pre-Shipment Inspection Agency owned by its proprietor Shri Sandeep Garg, having offices in several countries including USA. Their Houston (USA based) office issued 02 Pre-Shipment Inspection Certificates for inspection of Cast Iron Scrap of UK origin certifying that the consignment does not contain any type of arms, ammunition, shells, cartridges or any other explosive material in any form. These containers were imported into India by M/s. Alang Metal Exim Pvt. Ltd.
On import into India and an examination by Customs Pipavav, a total of 10 bomb shells were found in consignments. Accordingly, the penalty was proposed against the appellant u/s. 112 (without specifying sub- clause) and 114AA of Customs Act, 1962. Same was dropped by lower authorities for Section 114AA, but upheld for Section 112 to the extent of Rs. 10 Lakhs by Commissioner (Appeals) after reduction from Rs. 15 Lakhs.
Conclusion- Held that personal penalty under section 112 (b) of the Customs Act, 1962 was proposed in the notice on the proprietorship firm of the appellant without even recording the statement of the appellant, who is the proprietor of the firm. Therefore, the entire proceedings are void ab initio and accordingly, the impugned order was liable to be quashed and set aside.
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