2009 (8) TMI 1018 - AT - Customs

Summary

Issues involved: Imposition of penalties u/s 112(a) and 112(b) of the Customs Act, 1962 on various parties for diversion of imported goods meant for earthquake relief.

Imposition of penalties on M/s. Nopaji Lakhmaji Charitable Trust and Shri Shantilal Jain:
- The trusts imported old garments under exemption for earthquake relief but diverted them for sale.
- Shri Shantilal Jain allowed the diversion knowingly.
- Penalties of Rs. 50 Lakhs each were imposed, reduced to Rs. 10 Lakhs and Rs. 4 Lakhs respectively.

Imposition of penalties on M/s. Shivam Development Trust and Shri V.N. Gusai:
- Shri V.N. Gusai's involvement was minimal, penalized for handing over blank letterheads.
- Commissioner found no evidence of import by the trust or Gusai, set aside the penalties of Rs. 50 Lakhs each.

Imposition of penalty on Shri Dev Kumar Kapta:
- Kapta filed Bills of Entry without authorization for one trust, but not aware of diversion.
- No evidence linking him to the subsequent sale of goods, penalty of Rs. 25 Lakhs set aside.

Conclusion:
- Penalties reduced for some parties due to minimal involvement or lack of evidence.
- Appeals disposed off accordingly on 25th Aug. 2009.