2017 (3) TMI 444

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..... e goods. In the absence of such an opportunity, there was no scope for rendering a finding on liability for confiscation. The adjudicating authority rightly desisted from invoking the jurisdiction to confiscate. However, that also eliminated the jurisdiction to invoke section 112 of Customs Act, 1962. Consequently, the imposition of penalties on the appellants is without sanction of law - appeal allowed - decided in favor of appellant. - C/87337 & 87338/2015 - A/85868-85869/17/SMB - Dated:- 14-10-2016 - Shri C J Mathew, Member (Technical) Shri Anil Balani, Advocate for the appellants Shri V R Reddy, Assistant Commissioner (AR) for the respondent Order Appeals of Shri Amit Shantilal Momayya and Shri Yogesh Mangaldas Baj .....

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..... st the two appellants. In effect, the notice was truncated to the two appellants and adjudication restricted to the two. 5. In appeal, it is claimed that settlement in favour of the main noticee would also lead to closure of proceedings against co-noticees, that the show cause notice and impugned order do not elaborate upon the manner in which the appellants had contributed to contraventions rendering the goods liable to confiscation, that the impugned order does not hold that the goods are liable to confiscation, and that usage of licence of another is not within the scope of invoking section 112 of Customs Act, 1962. Learned Counsel for appellants relied upon the decision of the Hon ble Supreme Court in Union of India v. Onkar S Kanw .....

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..... penalty may be imposed on individuals. In the absence of a finding on liability of goods for confiscation, section 112 cannot be invoked. 10. Adjudication is a proceeding that is entirely within the preserve of the adjudicating authority who must arrive at a conclusion on facts without being prejudiced or influenced by any other authority. Grafting of finding on facts by another authority will not suffice. This is a simple consequence of the requirement of principles of natural justice that a noticee must have an opportunity to defend itself. When the jurisdiction to confiscate was alienated, and not resorted to by the adjudicating authority, the noticees were not heard on the confiscability of the goods. In the absence of such an oppor .....

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