2008 (2) TMI 263 - AT - Customs

Appellant expired as seen from death certificate - appeal filed by him against imposition of penalty abates itself - since the role of the appellant in the earlier case is identical to the role in the present case and in the earlier case, the Tribunal holds that the penalty u/s 112(b) cannot be imposed upon the appellant, there is no reason to hold that the Section 112(a) which covers different set of circumstances from these covered u/s 112(b), is attracted to impose penalty in present case

Summary

Issues:
1. Abatement of appeal due to appellant's demise.
2. Imposition of penalty under Section 112 of the Customs Act, 1962.

Issue 1: Abatement of appeal due to appellant's demise
The judgment notes the appellant's demise on 5-5-2005, as evidenced by the death certificate dated 20-5-2005. The Tribunal acknowledges this fact while dealing with the appeal, leading to the dismissal of the appeal against the imposition of penalty due to abatement following the appellant's death.

Issue 2: Imposition of penalty under Section 112 of the Customs Act, 1962
Regarding the appellant in appeal No. C/1505/02-Mum, who faced a penalty of Rs. 20 lakhs imposed by the Commissioner, the judgment delves into the role of the appellant in facilitating various financial transactions. It is highlighted that the appellant was involved in opening current accounts for firms, diverting duty-free goods in the local market, and engaging in cash transactions. The judgment references specific instances where the appellant was implicated in transferring funds and aiding in the disposal of duty-free goods. The adjudicating authority found the appellant liable for penalty under Section 112 of the Customs Act, 1962. However, the Tribunal, after considering the arguments presented, sets aside the penalty order. The Tribunal points out that since a previous case involving the same appellant did not attract penalty under Section 112(b), there is no basis to impose penalty under Section 112(a) in the current case, as the circumstances are similar. Consequently, the order imposing penalty is overturned, and the appeal is allowed.

In conclusion, the judgment dismisses appeal No. C/1504/02 due to abatement following the appellant's demise and allows appeal No. C/1505/02 by setting aside the penalty order under Section 112 of the Customs Act, 1962.