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TMI Blog2025 (1) TMI 1460X X X X Extracts X X X X X X X X Extracts X X X X ..... cts purchased for export from NS Dock, Kolkata, were exported in the name of M/s. A.M. Enterprise and not in the name of M/s. Global Foods International. The goods were being shown as sold by M/s. A.M. Enterprise in favour of M/s. Global Foods International and accordingly, online fund transactions were made by M/s. Global Foods International in favour of M/s. A.M. Enterprise and the money was being paid to all such suppliers in the name of M/s. A.M. Enterprise. The money transactions done through M/s. A.M. Enterprises has been mainly used by Mr. Ankit Kapoor for the purpose of renovation of the cold storage. Penalty under Section 114 - HELD THAT:- Penalty under Section 114 is imposable only when the person abets an offence which leads to confiscation of the goods. It must be established that he has abetted the offence knowingly. In this case, the appellant no. 1 had to carry out the packing, loading and unloading of the goods, as directed by his employer. Thus, the appellant no. 1 has not contravened any of the provisions under the Customs Act, 1962 warranting imposition of penalty under Section 114(i) of the Customs Act, 1962. Thus, the penalty under Section 114(i) is not imposa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oprietor of the exporting firm, namely, M/s. Global Foods International under Section 114(i) and Section 114A of the Customs Act and on the key persons namely, Dr. Sanjay Chaturvedi, Mr. Musarraf Hossain (hereinafter referred to as the "appellant no. 1") and Mr. Mizanur Mondal (hereinafter referred to as the "appellant no. 2"), under Section 114(i) of the Customs Act, 1962. 2.2. On adjudication, the Ld. Commissioner of Customs (Port), Custom House, Kolkata inter alia imposed penalties of Rs.50,00,000/- and Rs.10,00,000/- on the appellant no. 1 and appellant no. 2 respectively under Section 114(i) of the Act vide the impugned order. 3. Aggrieved by the imposition of penalties under the Customs Act, both the appellants have filed these appeals. 4. The appellant no. 1 viz. Mr. Musarraf Hossain submits that: - (i) He works in the firm M/s. Global Foods International, New Delhi; from the year 2013, he started looking after the export activities of the firm from Kolkata; that he looked after the loading and unloading of the products of M/s. Global Foods International and he got a remuneration of Rs.22,000/- per month. (ii) M/s. Global Foods International used to purchase cattle me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.M. Enterprise were engaged by Mr. Ankit Kapoor. (ix) M/s. A.M. Enterprise had no office and got its trade licence showing the rented residential room of the appellant no. 1 as its office / place of business. All necessary papers and/or documents in connection with M/s. A.M. Enterprise were being kept under the custody of Mr. Ankit Kapoor at Delhi. Further, the account of M/s. A.M. Enterprise was being audited by Mr. Ankit Kapoor by engaging Delhi based Chartered Accountant Firms. 4.1. Accordingly, the appellant no. 1 viz. Mr. Musarraf Hossain submits that he was not concerned with the dealings of neither of the firms, M/s. Global Foods International or M/s. A.M. Enterprises. As he was in no way concerned with the export of the said consignments, appellant no. 1 submits that the penalty imposed on him under Section 114(i) of the Customs Act, 1962 is not sustainable and prayed for setting aside the same. 5. The appellant no. 2 viz. Mr. Mizanur Mondal submits that: - (i) He is the owner of Ajmer Multipurpose Cold Storage situated at Mouza Zirat, J.L. No. 121, L.R. Khaitan No. 1367 under Barasat Police Station. he had given 10,000 sq. ft area of the said cold storage on rent b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imposed on him. 6.1. Regarding the role played by Mr. Mizanur Mondal (appellant no. 2), he submitted that he had rented his godown viz. Ajmir Multipurpose Cold Storage where the illegally procured beef had been stored. Accordingly, it is alleged that he has abetted the offence of export of beef and hence he is liable for penalty. 6.2. In view of the above submissions, the Ld. Authorized Representative of the Revenue justified the penalties imposed on both the appellants. 7. Heard both sides and perused the appeal records. 8. We observe that the present appeals are pertaining to the penalties imposed on Mr. Musarraf Hossain and Mr. Mizanur Mondal, of Rs.50,00,000/- and Rs.10,00,000/- respectively, under Section 114(i) of the Customs Act, 1962. 8.1. For the sake of ready reference, Section 114(i) of the Customs Act, 1962 is reproduced below: - "SECTION 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 wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. A.M. Enterprise and not in the name of M/s. Global Foods International. The goods were being shown as sold by M/s. A.M. Enterprise in favour of M/s. Global Foods International and accordingly, online fund transactions were made by M/s. Global Foods International in favour of M/s. A.M. Enterprise and the money was being paid to all such suppliers in the name of M/s. A.M. Enterprise. The money transactions done through M/s. A.M. Enterprises has been mainly used by Mr. Ankit Kapoor for the purpose of renovation of the cold storage. 9.3. Thus, we observe that appellant no. 1 is only an employee of the Firm owned by Mr. Ankit Kapoor and he was getting a monthly salary of Rs.22,000/-. He was duty bound to carry out the works assigned to him by his employer. In that process, if the employer misused his name and undertaken some illegal exports, the appellant no. 1 cannot be held responsible for those illegal activities. We observe that for the role played by Mr. Ankit Kapoor, separate penalty has been imposed on him in the impugned order. 9.4. Further, in this case we observe that the export products have been certified as 'meat' by the veterinary doctor Dr. Sanjay Chaturved ..... 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