2008 (7) TMI 732 - AT - Customs

Penalty - Held that - Learned Commissioner is yet to decide as to whether the exporter and Shri Antony Doss committed any offence whatsoever. He cannot find anybody to have abetted any offence until such offence is determined - imposition of penalties is pre-mature - appeal allowed.

Summary

Issues: Imposition of penalties under Section 114(i) of the Customs Act for abetment of smuggling offense.

In this case, the appellants were penalized by the Commissioner under Section 114(i) of the Customs Act for allegedly abetting an offense committed by another party involving attempted smuggling of red sander logs. The appellants challenged the penalties imposed on them, arguing that the Commissioner's finding of abetment could not be sustained as the main offense by the exporter and the agent was yet to be determined. The Tribunal noted that penalties for abetment cannot be imposed until the primary offense is established. The Commissioner had reserved orders against the main offenders who were absconding, and the Tribunal found the penalties imposed on the appellants premature. Therefore, the Tribunal vacated the penalties and allowed the appeals. The judgment highlights the importance of establishing the primary offense before penalizing others for abetment and emphasizes the need for a clear determination of offenses before imposing penalties under the Customs Act.