9911796707
|
Home
Issues:
Appeal against penalty imposed on partners for fraudulent claim of drawback by the firm M/s. Kan Karan Impex. Analysis: The judgment pertains to three appeals filed against a common order-in-original dated 31-12-1999 by the Commissioner of Customs, imposing penalties on the appellants for their involvement in a fraudulent claim of drawback by the firm M/s. Kan Karan Impex. The firm was accused of violating provisions of Section 76(b) of the Act by claiming drawback on goods with a market value lower than the amount due. The appellants, partners in the firm, were served with a show cause notice for confiscation of goods, recovery of drawback amount, and penalties. The Commissioner ordered confiscation of goods, recovery of Rs. 18,27,951/- from the firm, and imposed penalties of Rs. 5,00,000/- each on two appellants and Rs. 10,00,000/- on another. The firm's appeal against the Commissioner's order was dismissed for non-compliance with a stay order. During the appellate proceedings, none of the appellants appeared, nor did they submit written arguments. The Tribunal noted that the impugned order against the firm had become final and could not be challenged by the appellants. The penalties on the appellants were based on their partnership in the firm and involvement in the fraudulent claim of drawback. However, the Tribunal observed that specific acts attributing involvement to two appellants were lacking in the Commissioner's order. The Commissioner's order primarily implicated one appellant as the mastermind behind the fraudulent claim. Consequently, penalties on two appellants were set aside, while the penalty on the alleged mastermind was upheld. In conclusion, the Tribunal accepted the appeals of two appellants regarding the penalty imposed, while dismissing the appeal of the alleged mastermind. The judgment emphasized the need for concrete evidence of involvement in fraudulent activities to impose penalties on individuals associated with a firm.
|
