2018 (6) TMI 1019 - AT - Customs

Penalty u/s 114AA of CA - misdeclaration of import goods - the goods are complete TV units which were imported under the guise of TV panels - Held that - There is no doubt that the appellant has played a major role in the overall import of the TV sets not only by financing but also keeping a complete correlation. Therefore, he is liable for penalty - but the quantum of penalty is reduced - appeal allowed in part.

Summary

Issues:
Penalties imposed under Section 112(a) and Section 114AA of the Customs Act, 1962 for illegal import of TV sets under the guise of TV panels.

Analysis:

Issue 1: Penalties imposed under Section 112(a) and Section 114AA

The appellant was penalized under Section 112(a) and Section 114AA of the Customs Act, 1962 for his involvement in the illegal import of TV sets disguised as TV panels. The penalties were upheld by the Commissioner (Appeals) but later reviewed by the Appellate Tribunal. The appellant argued that he was not the importer and had only financed the import, citing relevant case laws to support his claim. However, the Tribunal found that the appellant played a significant role in the import process, making him liable for penalties. Despite this, considering that the goods were re-exported, the Tribunal decided to reduce the penalties imposed. The penalty under Section 112(a) was reduced from ?50,000 to ?25,000, and the penalty under Section 114AA was reduced from ?1,50,000 to ?50,000.

Conclusion:
The Appellate Tribunal, after considering the arguments from both sides, acknowledged the appellant's involvement in the illegal import of TV sets and upheld his liability for penalties. However, taking into account the re-export of the goods and precedents set by previous judgments, the Tribunal decided to reduce the penalties imposed under Section 112(a) and Section 114AA. The appeal was partly allowed, and the penalties were revised accordingly.