Dilip Dhakan Vs Commissioner of Customs (CESTAT Ahmedabad)
CESTAT Sets Aside Penalty on Partner Because Firm and Partners Are Not Separate Legal Entities; Penalty Reduced From Rs.25 Lakh to Rs.2 Lakh Due to Disproportionate Quantum; Admission Before Customs Authorities Upheld as Valid Basis for Penalty Under Section 114AA; No Dual Penalty on Partnership Firm and Partner for Same Customs Violation.
In Customs, Excise and Service Tax Appellate Tribunal, the appellant challenged an order dated 25.07.2012 passed by the Commissioner of Customs, Kandla, imposing a penalty of Rs.25 lakh under Section 112(a) of the Customs Act, 1962 and a further penalty of Rs.25 lakh under Section 114AA of the Customs Act.
The case arose from an investigation conducted by the Directorate of Revenue Intelligence (DRI), Ahmedabad, concerning imports made by M/s. Rodex International, a partnership firm holding an Importer-Exporter Code and engaged in trading activities. Intelligence inputs suggested that goods were being smuggled through a container imported in the name of the firm. The DRI kept surveillance over container number GLDU-0279344, for which Rodex had filed a Bill of Entry dated 02.02.2011 declaring refrigerators, LCD televisions, and plasma televisions.
Upon examination of the container, DRI officers found concealed black polyethylene bags hidden inside refrigerators. These bags contained 28,580 pieces of “Micro” brand 2 GB SD memory cards, which had not been declared in the Bill of Entry. Following investigation, a show cause notice dated 07.07.2011 was issued and penalties were imposed on several persons, including the appellant.
