2015 (3) TMI 624 - AT - Customs

Penalties under Section 112(a) and 114AA - Held that - As the matter has been settled by the Settlement Commission against the importer who is the main party in the case therefore, relying on the decision of S.K. Colombowala (2007 (7) TMI 514 - CESTAT, MUMBAI) wherein it has been held that cases against all co-noticees comes to an end once order of settlement is passed in respect of the person entitled to file an application before the Settlement Commission. Therefore, as in this matter also the case against the main party i.e. the importer has been settled by the Settlement Commission vide Order No. 124/2010 therefore the proceedings initiated against all the four noticees comes to an end. In these circumstances, the impugned order is set aside - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT Mumbai ruled in favor of the appellants, setting aside penalties imposed under Sections 112(a) and 114AA of the Customs Act, 1962. The decision was based on the Settlement Commission settling the case of the importer, leading to the conclusion that penalties on the appellants are not imposable. The appeals were allowed with consequential relief.