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2022 (3) TMI 758 - AT - CustomsLevy of penalty u/s 112 (a) and section 114AA of Customs Act, 1962 - alleged preparation of fake TR-6 challans showing payment of customs duty which actually was not paid by the appellant - HELD THAT - The appellant has admitted the guilty at the time of recording his statement - As there is corroboration in the statement of the appellant that the appellant has shared money foregone for non payment of customs duty with Sh. Varun Mahajan, in that circumstance, the appellant is not entitled to any leniency from this Tribunal as the appellant misappropriated the government money. There are no infirmity in the impugned order for imposing penalties and the same is upheld - appeal dismissed.
Issues: Appeal against penalties imposed under section 112(a) and section 114AA of Customs Act, 1962 for alleged preparation of fake TR-6 challans showing payment of customs duty not actually paid.
Analysis: 1. Issue of Alleged Preparation of Fake TR-6 Challans: The appellant appealed against penalties imposed under section 112(a) and section 114AA of the Customs Act, 1962 for allegedly preparing fake TR-6 challans showing payment of customs duty that was not actually paid. The appellant claimed to have acted under the guidance of another individual and argued that he should not be penalized for the actions of his master. However, the investigation revealed that the appellant admitted guilt during the statement recording process. The appellant's statement indicated his involvement in preparing fake TR-6 challans to evade customs duty, citing financial difficulties and the need for money for personal reasons, including his mother's cancer treatment and sister's marriage expenses. 2. Admission of Guilt and Misappropriation of Government Money: The appellate tribunal considered the submissions from both sides and found that the appellant had indeed admitted to preparing fake TR-6 challans to evade customs duty. The appellant's statement highlighted his collaboration with another individual, Varun Mahajan, in the scheme to submit fake challans and evade customs duty. The tribunal noted that the appellant had shared the money generated through this illegal activity with Varun Mahajan, leading to the misappropriation of government funds. Consequently, the tribunal upheld the penalties imposed on the appellant under sections 112(a) and 114AA of the Customs Act, 1962, as the appellant's actions constituted a clear violation of the law by evading customs duty through fraudulent means. 3. Decision and Upholding of Penalties: Based on the corroboration in the appellant's statement regarding his involvement in the preparation of fake TR-6 challans and sharing of evaded customs duty money with Varun Mahajan, the tribunal concluded that the appellant was not entitled to leniency. The tribunal found no infirmity in the impugned order imposing penalties on the appellant for misappropriating government funds through the submission of fake challans. Consequently, the tribunal dismissed the appeals filed by the appellant, upholding the penalties imposed under the Customs Act, 1962. The judgment serves as a deterrent against fraudulent practices in customs duty payments and emphasizes the accountability of individuals involved in such illegal activities. In conclusion, the appellate tribunal's decision in this case underscores the importance of upholding the integrity of customs duty payments and penalizing individuals engaged in fraudulent practices, as demonstrated by the appellant's admission of guilt and involvement in preparing fake TR-6 challans to evade customs duty.
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