2023 (6) TMI 709 - AT - Customs

Levy of penalty of Rs. 4 lakhs each under Section 112 (a) and Section 114AA of Customs Act, 1962 - mis-declaration of description of goods - personal responsibility for any omission or commission - HELD THAT - For imposition of personal penalty, contravention of the provisions of law on by a person is required. The original authority has given the finding that the present appellant has not transacted any business. That itself establishes that the present appellant was not responsible for any omission or commission. Therefore, imposition of personal penalties on the present appellant are untenable. The personal penalties of Rs. 4 lakhs each under Sections 112(a) and 114AA of Customs Act, 1962 are set aside - the appeal is allowed.

Summary

Issues involved: Delinking of appeals due to absence of appellants during hearing, imposition of penalties under Customs Act, 1962 on the present appellant.

Delinking of Appeals:
The appellants in certain appeals were repeatedly absent during the hearing, leading to the delinking of those appeals, with only one appeal being decided.

Imposition of Penalties under Customs Act, 1962:
The case involved the imposition of penalties on the present appellant, who was a partner in a firm involved in mis-declaration of goods. The appellant was imposed with penalties under Section 112(a) and Section 114AA of the Customs Act, 1962. The appellant challenged the imposition of penalties before the Tribunal.

Judgment Details:
The Tribunal carefully considered the submissions made by both parties. The appellant's counsel argued that the present appellant was not personally responsible for any omission or commission as he was minimally involved in the business and had not transacted any business as per the findings of the original authority. It was contended that the appellant was not liable for the penalties imposed.

The learned Authorized Representative supported the impugned order which imposed penalties on the present appellant.

The Tribunal, after examining the records and submissions, found that for the imposition of personal penalties, contravention of the law by a person is required. Since the present appellant had not transacted any business, it was established that he was not responsible for any omission or commission. Therefore, the imposition of personal penalties on the present appellant was deemed untenable. Consequently, the Tribunal set aside the part of the Order-in-Appeal that imposed penalties on the present appellant under Sections 112(a) and 114AA of the Customs Act, 1962.

As a result, the appeal was allowed, and the Order-in-Appeal was modified to exclude the personal penalties imposed on the present appellant.