2000 (10) TMI 342 - AT - Central Excise

Summary

Issues:
- Imposition of penalties under Section 112 of the Act by the Additional Collector of Customs.
- Allegations against the appellants regarding the sale of imported goods contrary to law.
- Involvement of the appellants in the disposal of imported goods in the market.
- Evidence and findings against each appellant for penalty imposition.

Analysis:

1. Imposition of Penalties under Section 112 of the Act:
The judgment revolves around the imposition of penalties on the appellants by the Additional Collector of Customs under Section 112 of the Act. The penalties were confirmed by the Collector (Appeals) and challenged in the appeals before the Appellate Tribunal CEGAT, Mumbai.

2. Allegations of Selling Imported Goods Contrary to Law:
The penalties were imposed based on findings that a consignment of polyester fabrics, imported duty-free under advance license and Notification 117/78, was sold in the market instead of being utilized for manufacturing final products for export. The judgment analyzes the specific allegations against each appellant in this regard.

3. Involvement in Disposal of Imported Goods:
The judgment delves into the involvement of each appellant in the disposal of imported goods. It discusses the evidence presented, such as statements from individuals involved in transporting goods and partners of importing firms, to determine the level of involvement of each appellant in the disposal activities.

4. Evidence and Findings Against Each Appellant:
For each appellant, detailed analysis of the evidence and findings is provided. The judgment scrutinizes the statements of individuals involved, phone conversations, financial transactions, and partnership structures to assess the level of culpability and justification for penalty imposition. Specific details regarding the involvement or lack thereof of each appellant are thoroughly examined.

5. Conclusion:
Ultimately, the appeals of two appellants are allowed, while one appeal is dismissed. The judgment confirms the penalty imposed on an appellant found to be actively involved in the disposal of imported goods in the market. The decision is based on a comprehensive analysis of the evidence, statements, and legal provisions relevant to the case.

This detailed analysis of the judgment highlights the key issues, evidence, findings, and conclusions reached by the Appellate Tribunal CEGAT, Mumbai in the matter of penalties imposed under Section 112 of the Act against the appellants involved in the disposal of imported goods contrary to the law.