Suketu J. Mody Vs Commissioner of Customs (Bombay High Court)
Bombay HC holds penalty under Section 112(a) of Customs Act, abates on death of noticee and is not recoverable from legal heirs
Shri. Jiten P. Mody, was one of the Directors of the JPM Group of Companies. A penalty was imposed on him under Section 112(a) of the Customs Act for alleged mis-declaration of imported parts of ATM machines. The penalty was challenged in appeal before CESTAT, Mumbai. During the pendency of appeal; he passed away. However; his appeal came to be dismissed. The said order was challenged; in writ; by the legal heir claiming that penalty proceedings abate.
The Hon’ble Bombay High Court allowed the writ petition. It held: (i) personal penalty proceedings initiated against the deceased abate; (ii) Late Jiten P. Mody had abated upon his death; (ii) as per Supreme Court decisions in Shabina Abraham and Madras High Court in S. Hidayatullah, the recovery could not be made from the of penalty could not made from the legal heirs as penalty abates; (iii) the Revenue also agreed with the proposition; in law.
Argued by Adv. Bharat Raichandani i/b UBR Legal.
List of Cases Discussed / Relied Upon
- Shabina Abraham & Ors. Vs. Collector of Central Excise & Customs, (2015) 10 SCC 770.
- S. Hidayathulla @ Mannady Bharakath (Deceased) & Ors. Vs. The Commissioner of Customs, CMA Nos.3581 and 3582 of 2014 and MP Nos.1 and 1 of 2014.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
