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Issues involved: Penalty imposed under Section 112 of Customs Act, 1962 for abetting in disposal of raw silks imported into India on the basis of Advance License contrary to license terms.
Summary: The appellant was penalized with Rs. 1 lakh each in two orders under Section 112 of Customs Act, 1962 for abetting in the disposal of raw silks imported into India against license terms. The appellant argued that he did not deal with the goods liable for confiscation and hence the penalty was unjustified, citing previous Tribunal decisions. The Department argued that the Tribunal decisions cited by the appellant were not applicable due to the Supreme Court's decision in Sachindananda Banerji case. The Tribunal considered both arguments and observed that the issue at hand was the illegal disposal of goods contrary to law. The Tribunal referred to the Supreme Court's observations in the Sachindananda Banerji case, emphasizing that dealing with prohibited goods includes any prior arrangement or agreement related to such goods. The Tribunal noted that the appellant's actions facilitated the disposal of imported goods in violation of license terms, making him actively involved in dealing with prohibited goods. The Tribunal also highlighted that mens-rea is not necessary for imposing penalties under Section 112 of the Customs Act, 1962. After considering all arguments and circumstances, the Tribunal found no merit in the appeals but decided to reduce the penalties due to the appellant's age, financial situation, and the period over which the transactions occurred. The penalties were reduced to Rs. 50,000 in one case and Rs. 10,000 in the other. *(Pronounced in open Court)*
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