9911796707
TMI Blog2024 (9) TMI 1328X X X X Extracts X X X X X X X X Extracts X X X X ..... whereabouts by way of KYC of the persons associated from whom they had sourced the business nor were they in possession of any letters of authorization or profile assessment and verification report etc. of their ultimate client M/s. Bhadrakali Export Pvt.Ltd., Nepal for whom they undertook the said transit clearance of Nepal based cargo meant for export to Korea. The appellant s plea that as the show cause notice makes out no allegation of abetment against the appellants, no penalty can be imposed on them under section 114(i) of the Customs Act, 1962, cannot be agreed upon. The fact that the present attempted export of Red Sanders was attempted through a chain of intermediaries with at no stage of any mention of KYC documents coming through ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Customs Act, 1962 concerned with a case of attempted export of Red Sanders detected in Customs Transit Declaration (CTD) consignment (Nepal Export). The said order imposes a penalty of Rs.50.00 Lakh each on the two appellants in the present appeal. 2. Based on intelligence gathered, the DRI officers of Calcutta Zonal Unit, interdicted a consignment of export of an attempted smuggling of Red Sander woood logs in the guise of Nepalese cane handicrafts under CTD No.295 dated 30.03.2014/EF-14 dated 03.04.2014. The examination of the said consignment led to seizure of 210 Red Sander wood logs against 56 packages of Nepalese cane handicraft as declared. 3. Investigations were conducted into the matter and one Shri Dilip Kr. Sarkar of the Custom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an, Korea. It is also recorded in the order that the appellant had no contact with M/s. Bhadrakali Exports, Kathmandu, Nepal and that the impugned job was picked up by Shri Srikanta Adhikary and handed over to them for their professional services of Customs clearance. The Appellant firm did not possess any letter of authorization, issued in the name of the CHA firm by the Nepal based exporter nor were they aware of the profile of the exporter. Also they did not know the exporting firm personally and were of the view that KYC norms did not apply to foreign clients. 4. In the course of investigations, the authorities also examined Shri Arup Mukherjee, Proprietor of M/s. Shiva Trading Company, also an appellant in the present appeal, who was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they had handled several consignments on earlier occasions on behalf of M/s. Arihant Logistics. It is for this reason that the charge for inviting penal action under Section 114(i) of the Customs Act, 1962 was made out and upheld against the appellants. 6. Pleading against imposition of penalty the Ld.Counsel for the appellants invites our attention to section 114(i), which reads as under:- 114. Penalty for attempt to export goods improperly, etc. Any person who, in relation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation under section 113, or abets the doing or omission of such an act, shall be liable, - (i) in the case of goods in respect of which any prohibition is in force u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were they in possession of any letters of authorization or profile assessment and verification report etc. of their ultimate client M/s. Bhadrakali Export Pvt.Ltd., Nepal for whom they undertook the said transit clearance of Nepal based cargo meant for export to Korea. We are not in agreement with the appellant s plea that as the show cause notice makes out no allegation of abetment against the appellants, no penalty can be imposed on them under section 114(i) of the Customs Act, 1962. A close and careful look would reveal that it is not only abetment which could result in fixation of penal liabilities on the person concerned, but the law also provides for imposing penalty for doing or failure to do any act which act or omission, renders su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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