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2017 (3) TMI 833 - AT - CustomsImposition of penalties u/s 114(i) of the CA, 1962 - imposition on the ground that appellant had abetted M/s. Shree Khatoo Exports Ltd. in defrauding the Government by issuing shipping bills for Africa but unloaded the consignments at Dubai, which enabled M/s. Shree Khatoo Exports Ltd. to claim ineligible drawback - Held that - the adjudicating authority has sought to impose penalty under surmises - the provisions of Section 114(i) of the CA, 1962, is not attracted - appeal allowed - decided in favor of appellant.
Issues:
Appeal against penalties imposed under Section 114(i) of the Customs Act, 1962 for allegedly abetting in defrauding the Government by issuing shipping bills for Africa but unloading consignments at Dubai. Analysis: The appeals challenged penalties imposed on a shipping company and its managing director under Section 114(i) of the Customs Act, 1962, for allegedly aiding in defrauding the Government by issuing shipping bills for Africa but unloading consignments at Dubai. The adjudicating authority found the main appellant aware of the cargo off-loading at Dubai based on the failure to refund freight charges or forward them to the intended destination in South Africa. However, the Tribunal noted that the penal provisions of Section 114(i) were not applicable in this case. The Tribunal highlighted that there was no evidence showing the appellants' awareness of any wrongdoing by the consignee. The act of destuffing containers at Dubai, as per consignee's request, did not automatically attract penal provisions. The Tribunal emphasized that a shipping company must comply with consignees' unloading instructions. Additionally, the failure to forward freight charges from Dubai to Africa could not be solely held against the appellants. The Tribunal concluded that the provisions of Section 114(i) of the Customs Act, 1962, were not applicable in the present cases. Consequently, the impugned order imposing penalties was set aside, and the appeals were allowed with any consequential relief.
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