2018 (5) TMI 845 - AT - Customs

Penalty - smuggling - illegal imports - mis-declaration of goods - Held that - From the facts of the case, as uncovered by the DRI investigation, it is evident that Shri PK Ralli had colluded with Shri BK Goyal in arranging the import and smuggling of goods in the name of fictitious firm M/s Mehak Overseas - penalty upheld - appeal dismissed - decided against appellant.

Summary

Issues: Mis-declaration of goods, illegal imports, penalty imposition, abetting smuggling

Mis-declaration of goods:
The case involved mis-declaration of goods by M/s Mehak Overseas, where the investigation revealed that the company had imported several consignments in the past through different customs locations. It was discovered that M/s Mehak Overseas had only provided their name and address for the imports, while the actual importer was identified as Shri Pawan Kumar Ralli. Shri Ralli was found to have handed over relevant documents to Customs House Agents (CHAs) for filing import documents, and he was actively involved in arranging the import and smuggling of goods in the name of the fictitious firm. The adjudicating authority imposed penalties on Shri Ralli for abetting smuggling by M/s Mehak Enterprises.

Illegal imports:
The impugned order discussed the illegal imports by M/s Mehak Overseas, where undeclared velvet cloth was confiscated with an option to redeem upon payment of a fine. The declared value in the Bill of Entry was rejected and re-determined, leading to the demand for differential duty. Additionally, past clearances made by the company also resulted in demands for differential duty. Penalties were imposed on various individuals involved in the case, with the present appeal being filed solely by Shri PK Ralli.

Penalty imposition:
In the present appeal, the penalty imposed on Shri PK Ralli was challenged mainly on the grounds that he was in custody during a specific period and could not have been involved in the activities related to the smuggling. However, based on the facts uncovered during the investigation, it was established that Shri Ralli had colluded with others in arranging the import and smuggling of goods under the fictitious firm's name. Despite the argument regarding the timing of events, the tribunal found no infirmity in upholding the penalty imposed on Shri Ralli for his involvement in the smuggling activities.

Abetting smuggling:
Shri PK Ralli's active involvement in abetting smuggling by M/s Mehak Enterprises was a crucial aspect of the case. The tribunal upheld the penalty imposed on Shri Ralli under Section 112/114A for his role in facilitating the illegal import and clearance of goods under false pretenses. Despite the argument regarding his custody during a specific period, the tribunal found the evidence of his collusion and participation in the smuggling activities to be substantial, leading to the affirmation of the penalty in the impugned order.

Overall, the tribunal rejected the appeal and upheld the penalty imposed on Shri PK Ralli for his involvement in the mis-declaration of goods and abetting smuggling activities, as detailed in the impugned order.