2009 (7) TMI 1272 - AT - Customs

Summary

Issues: Imposition of penalties u/s 112(a) of Customs Act, 1962 for filing Bills of Entry against bogus and forged advance licences.

The Commissioner imposed penalties of Rs. 2 lakhs each on CHA M/s Vaz Forwarding Ltd. and Shri Winston Gregor Vaz, and Rs. 50,000 on Shri Suresh Yadav u/s 112(a) of Customs Act, 1962 for filing Bills of Entry against bogus advance licences. The appellants denied knowledge of the licences being forged, and there was no direct evidence to prove otherwise. The officers cleared the goods against these licences, and only later were they found to be forged. The penalties were set aside as there was no evidence of the appellants' awareness of the forgery.

The Commissioner observed that the appellants, including M/s Vaz Forwarding Ltd. and Shri Suresh Yadav, failed to prove their innocence regarding the filing of Bills of Entry against bogus advance licences. Despite claiming to have acted in a normal course of business, they were unable to provide evidence of their lack of knowledge about the forged licences. The appellants' plea of not being guilty was deemed unacceptable due to their failure to maintain records or copies of relevant documents, which contradicted their claim of acting in good faith.

The appellants, including CHA M/s Vaz Forwarding Ltd. and Shri Winston Gregor Vaz, were penalized for their involvement in filing Bills of Entry against forged advance licences. However, the absence of direct evidence linking them to the knowledge of the forgery led to the setting aside of the penalties. The appellants were cleared of the charges as there was no proof of their complicity in the fraudulent activities related to the advance licences.