Case Law Details
Seville Products Limited Vs Commissioner of Customs Exports (Delhi High Court)
Delhi High Court held that penalty u/s 112(a) of the Customs Act on overseas supplier duly imposable as alleged offences have been committed within the territory of India.
Facts- The appellant mainly contested the levy of penalty under Section 112(a) of the Customs Act on the ground that no penalty can be imposed under the Customs Act against an overseas supplier as the Customs Act does not have extra-territorial operation. Further, it was also contested that since the proceedings against the importers and other co-noticees have been dropped pursuant to the said parties approaching the Settlement Commission, no proceeding for abetment and evasion of customs duty can be maintained against the appellant who is merely a co-noticee.
Conclusion- In the present case, the appellant was found to be complicit in clearance of the goods on the basis of false invoices issued by the appellant. It was also found that the appellant had collected part of the consideration for the goods in India, which was sent to it through hawala. The alleged offences have been committed within the territory of India. Thus, the contention that the levy of penalty under Section 112(a) of the Customs Act on the appellant was beyond the purview of the Customs Act is wholly misconceived.
Discharge of liability of one of the noticees either by making payment without a contest, or by settlement before the Settlement Commission would not absolve the other noticees from their liability.
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