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TMI Blog2017 (7) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... /31/06-07 dated 28th February 2007 of Commissioner of Customs, CSIA, Mumbai which has, besides confiscating 'rough diamonds', imposed penalties of Rs. 1,00,00,000 on Shri Hukmichand Jain, Rs. 5,00,000 on Shri Mohanlal Jain, Rs. 2,00,000 on Shri Anil Damodar Gharat and Rs. 5,00,000 each on Shri Vrajendra Thakker and Shri Yogesh Sancheti under section 112 (a) of Customs Act, 1962 for involvement in the import of the 'rough diamonds'. 2. The adjudicating authority has found that the goods had been imported by a company that was owned, operated and controlled by Shri Hukmichand Jain and that declaration were not in conformity with the transaction value for the purposes of assessment under section 14 of Customs Act, 1962. It is also held that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the name of various companies owned/controlled and managed by his father Shri Hukmichand Jain as can be clearly seen the pattern from the chart fingering at page 53 of the SCN. In case of imports pertaining to M/s Arihant Corporation, he utilised the services of his employee and Tammy proprietor of M/s Arihant Corporation, Shri Mohan Lal Jain in exchange for free office and residential accommodation. In case of imports pertaining to M/s Luster Impex, he utilises services of his employee and dummy director of M/s Luster Impex, Shri Anil Gharat for monetary consideration and in case of imports pertaining to M/s Rashi Diamonds, he forced signatures of Shri Soman, his ex--employee and dummy proprietor/director of M/s Rashi Diamonds for their c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Shri Hukmichand Jain as the alleged mastermind. It is his contention that there was no documentary evidence linking Shri Hukmichand Jain with M/s Luster Impex and the reliance placed on the statement of the employee of the customs house agent was misplaced owing to the claim of the said person to have identified Shri Hukmichand whereas the statement makes it clear that the contact was only over phone. It is contended that the incriminating statement of the partners of M/s Sancheti Impex cannot be relied upon as their averment of an invoice having been fabricated on 28th June 2003 is not consistent with the fact that the computer used for such fabrication had been seized on 25th June 2003 itself. The credibility of the conclusion that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the past and set aside the order of confiscation of previous imports. The decision in Well Knit Apparels (P) Ltd v. Commissioner of Customs, Madras [1999 (106) ELT 431 (Tribunal)] holds similarly. 7. In the context of the contention of the directors of M/s Sancheti Impex that penalties had been imposed on them without proceeding against the importing companies, the decision of the Tribunal in Sanjeev Kedia v. Commissioner of Customs (Preventive), Mumbai [2002 (146) ELT 197 (Tri-Mumbai)] which had set-aside the penalty against the directors for the same lapse in the show cause notice is relevant. In Nalin Z Mehta v. Commissioner of Customs, Ahmedabad [2014 (303) ELT 267 (Tr-Ahmd)], the Tribunal had, consequent upon elaborate analysis of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d sans substance given the facts. Lack of awareness, knowledge at intent is neither to be considered not accepted in economic offences.' 9. Though the decision was cited to support the penalties imposed on the personnel of the importing entities who had signed the bills of entry, it also calls for a more stringent examination of the evidence against the alleged mastermind who claims that he is not associated with the importing entities and that the importing entities should bear full responsibility for any misdeeds. 10. The emails furnished by Learned Authorised Representative will also require a detailed scrutiny for compliance with section 138 of Customs Act, 1962 for implicating the alleged mastermind. 11. The adjudicating authority h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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