2004 (12) TMI 453 - AT - Customs

Summary

Issues:
Penalties imposed under Section 112(a) of the Customs Act, 1962 on appellants for illegal import of a vehicle.

Analysis:
The case involved penalties imposed on appellants under Section 112(a) of the Customs Act, 1962 for their involvement in the illegal import of a vehicle. The original authority had confiscated the vehicle and imposed penalties on the appellants. However, the CEGAT set aside the penalties and fine, directing a re-determination by the original authority. The Additional Commissioner then re-imposed the penalties, which were upheld by the Commissioner (Appeals), leading to an appeal before the Tribunal.

The main contention raised by the appellants was that the confiscation of the vehicle should not stand as the penalties were set aside. The Tribunal clarified that the CEGAT's remand was for re-determination of penalties and fines, not for setting aside the confiscation. The adjudicating authority correctly re-determined the redemption fine as per the CEGAT's order. The penalties on the appellants were upheld based on clear findings of their involvement in the illegal import, as detailed in the show cause notice and evidence presented.

The Tribunal noted that the involvement of one of the appellants in fabricating documents for the import was established through statements and evidence. The penalties were imposed under Section 112(a) of the Customs Act, which covers acts or omissions rendering goods liable to confiscation. The appellants were found to be actively involved in the import and sale of the vehicle, making them liable for penalties. The Tribunal upheld the penalties but reduced the amount from Rs. 3 lakhs to Rs. 2 lakhs each for the appellants, considering the circumstances of the case.

In conclusion, the Tribunal upheld the penalties imposed under Section 112(a) of the Customs Act on the appellants for their involvement in the illegal import of the vehicle. The penalties were reduced to Rs. 2 lakhs each, based on the established facts and evidence presented in the case.