Case Law Details
Vipul Joshi Vs C.C.-Ahmedabad (CESTAT Ahmedabad)
CESTAT Ahmedabad held that direct participation and knowledge on the part of the person has to be established. In absence of sufficient evidence, penalty u/s 112(b) of the Customs Act, 1962 cannot be levied.
Facts-
Post search by the officers of Airport Intelligence Unit, Ahmedabad it was argued that there was smuggling of gold from Dubai to India with intent not to pay Customs Duty. Accordingly, show cause notices were issued proposing confiscation of the seized goods under Sections 111(d), 111(i), 111(I) and 111(m) of the Customs Act, 1962 and demanding customs duty and imposition of penalty under Section 112(a) & 112 (b) and Section 114A & Section 114AA read with Section 123 of the of the Customs Act. Appellant was also issued show cause notice whereby it was alleged that the Appellant had also financed to Shri Rutugna Trivedi, which was used by him to procure Gold in Dubai and to smuggle the same into India. Thus it appears that Appellant was knowingly involved in smuggling of gold into India which he had reasons to believe the smuggle under Section 111 of the Customs Act, 1962. After following due process, the adjudicating authority vide impugned order dated 29-11-2021 confirmed the charges and demands proposed in Show Cause Notice. He imposed the penalty of Rs. 2,28,00,000/- under Section 112(b)(i) of the Customs Act 1962 on the appellant. Being aggrieved, the appellants preferred appeal before this Tribunal.
Conclusion-
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