Nawal Kishore Singh Vs Commissioner of Customs (Export) (Delhi High Court)
The Delhi High Court considered an appeal against a penalty imposed on an individual under Sections 112(a) and 114AA of the Customs Act, 1962, in connection with export of impugned goods. The penalty was originally sustained by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), despite the exoneration of the appellant’s employer, a Custom House Agent, in a related proceeding.
The Tribunal had earlier set aside the penalty imposed on the employer, holding that although there were phone calls between parties around the time of export, there was no sufficient evidence to justify penalty. It further observed that even if the employer had knowledge of the transaction, such knowledge alone was not sufficient to impose liability.
In the present case, the appellant was admittedly an employee of the same Custom House Agent. The only material relied upon to implicate the appellant was alleged communication with other individuals involved in the export. The High Court noted that the Tribunal had not discussed any independent evidence explaining why the appellant should be penalised when the employer, against whom similar evidence existed, had already been exonerated.
The Court observed that the finding of involvement was based on the same set of evidence that had been considered insufficient in the employer’s case. It found no justification for treating the employee differently, particularly when the alleged acts were performed in the course of employment. The Court also noted that the employer’s exoneration had attained finality, as it had not been challenged.
