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Penalty imposition for issuing NOC, mis-declaration of goods, undervaluation, evasion of Customs duty. Analysis: The case involved an appeal against the imposition of penalties on M/s. Ubique Alloys Pvt. Ltd. and its Director for their involvement in the importation of steel pipes. The issue revolved around the issuance of a No Objection Certificate (NOC) by the Director to another entity, M/s. Keystone Inc., which resulted in mis-declaration of goods, undervaluation, and evasion of Customs duty. The appellant argued that merely issuing the NOC should not warrant a penalty. On the other hand, the Department contended that the appellants facilitated illegal activities by allowing the use of their company name and address without informing Customs authorities, leading to Customs duty evasion. Upon hearing both sides, the Tribunal considered the penalty imposed under Section 112(a) of the Customs Act, which pertains to individuals rendering goods liable for confiscation. The Tribunal noted that the section does not specifically address penalties for failure to inform Customs about NOC issuance or deliberate inaction. Additionally, the Tribunal disagreed with the Commissioner's view that the appellants allowed the use of their company name and address. The importation was conducted by M/s. Keystone Inc. in their own name, negating the notion of the appellants lending their name. Consequently, the Tribunal found a strong prima facie case in favor of the appellants and waived the pre-deposit requirement of penalties for both parties, allowing a stay petition during the appeal process. This judgment highlights the importance of clarifying legal provisions and factual circumstances to determine liability accurately in cases involving Customs duty evasion and related penalties. The decision underscores the need for a clear nexus between actions and statutory provisions when imposing penalties under the Customs Act.
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