2018 (8) TMI 964 - AT - Customs

Restoration of appeal - case of appellant is that they had not received the due notice for hearing from the Tribunal and they have come to know of the order only when they received the order - Held that - It is evidenced by the records that they have resigned and the same was accepted well before the import of the impugned goods. Therefore, these two directors cannot be held responsible for commissions and omissions of M/s. Cochin Plastics Pvt. Ltd. The only findings given by the learned Commissioner was that he cannot escape from the liability of non-performing of the unit. No findings whatsoever have been given on his commissions or omissions with reference to the import of the impugned goods. Under the circumstances, the penalty levied on him also appears to be not sustainable. Applications for restoration of appeals are upheld - Penalties set aside.

Summary

Issues: Restoration of appeals due to non-prosecution, Liability of directors for company's actions, Imposition of penalties

Restoration of Appeals:
The appellants' appeals were dismissed for non-prosecution by the CESTAT, leading to applications for restoration. The counsel argued that the appellants were unaware of the hearing and subsequent order. The Tribunal found the absence was not deliberate, allowing the applications and restoring the appeals to their original numbers. Subsequently, with the consent of both parties, the Tribunal decided to proceed and adjudicate the appeals on their merits.

Liability of Directors:
The case involved M/s. Cochin Plastics Pvt. Ltd., where allegations were made regarding the import of goods after the expiry of a valid permission letter. The directors, Shri George Pandicheril, Smt. Sally George, and Shri Reji K. Thomas, faced penalties and confiscation of goods. The Tribunal noted that George and Sally had resigned from the company before the imports, absolving them of responsibility. The Commissioner's findings were deemed factually incorrect, as the directors had already resigned and their penalties were set aside. Regarding Shri Reji K. Thomas, the Tribunal emphasized the lack of findings on his involvement in the import of goods, leading to the penalty imposed on him being deemed unsustainable.

Imposition of Penalties:
The Tribunal, after hearing both sides and examining the records, concluded that the penalties of ?1,00,000/- each imposed on the appellants were not justified. The penalties were set aside, providing consequential relief as necessary. The Tribunal's decision to uphold the restoration of appeals and overturn the penalties was pronounced in open court on 10/07/2018.