9911796707
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Issues involved: Violation of duty free import conditions, sale of imported goods, penalty under Customs Act.
Summary: 1. The case involved M/s. Shreeji Cosmetics Industries importing glycerine instead of sorbitol under an advance license for duty-free import. They fulfilled their export obligation but sold the imported glycerine to another party, M/s. Ratilal Hemraj, who undertook the export. A show cause notice was issued for confiscation of goods, duty demand, and penalties under the Customs Act. 2. Investigation revealed that M/s. Shreeji Cosmetics Industries sold the glycerine to M/s. Ratilal Hemraj, who facilitated the export and sale of the goods. The Commissioner held the glycerine not eligible for duty exemption, confiscated part of the goods, and imposed penalties on both companies. 3. The appeal by Shri Ratilal Hemraj argued that they were not aware of the duty-free import conditions violation and purchased the goods legally from M/s. Shreeji Cosmetics Industries. They disputed the imposition of penalties and redemption fine. 4. The advocate for the appellants contended that they were not involved in the illegal import and sale of goods, while the revenue argued that the appellants were de facto importers and liable for penalties. Previous tribunal decisions were cited to support both arguments. 5. The Tribunal found that M/s. Shreeji Cosmetics Industries' non-compliance with the advance license conditions rendered the confiscation of goods unchallenged. Shri Ratilal Hemraj was held liable for the wrongful import and ordered to pay the redemption fine. 6. Regarding penalties, the Tribunal noted the appellants' involvement in the import process and their knowledge of the restrictions on selling the goods. Despite reducing the penalty amount, the Tribunal upheld the liability for penalties due to the appellants' complicity in the illegal import and sale of goods. 7. The appeal was partly allowed with reduced penalty imposed on the appellants.
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