C/330/2007-DB. Case: Shri C.K. Sunny Vs Commissioner of Central Excise, Service Tax And Customs Bangalore-IV. CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)

Case NumberC/330/2007-DB
CounselFor Appellant: Shri P.V. Santhosh, Adv. and For Respondents: Shri Ajay Saxena, A.R.
JudgesSmt Archana Wadhwa, Judicial Member and Shri Ashok K. Arya, Technical Member
IssueCustoms Act 1962 - Section 112(a)
Judgement DateMay 20, 2017
CourtCEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)


Archana Wadhwa, J. (South Zonal Bench Bangalore)

  1. The challenge in the present appeal is to a penalty of Rs 50,000/- imposed upon the applicant Shri C.K. Sunny in terms of the Provisions of Section 112(a) of Customs Act 1962.

  2. For better appreciation of the reasons for imposing penalty upon the said applicant, we reproduce the relevant paragraphs from the impugned order.

    -- 130. Show Cause Notice proposes that penalty under Section 112(a) may be imposed on Shri C.K. Sunny. It has been admitted by Shri C.K. Sunny in his statement that he had purchased the CFLs, which were clandestinely removed from the Port without payment of duty. It is also admitted that the CFLs with the markings -- Milton-- were imported as per his request by Shri K.T. Charley. It is also seen that the 810 Cartons of CFLs were unloaded in the dead of the night and no efforts were made by Shri Sunny to obtain the Bills in respect of these imported consignment. He had also admitted that he had sold these CFLs to footpath vendors without any Bills. It is therefore held that the dealings in respect of the purchase and sale of 40500 CFLs collectively valued at Rs 5,00,000/- were done under a cloud with an intention of procuring the goods without payment of duty and maximizing his profits.

  3. In view of the above, Shri Sunnys contentions that he had purchased the CFLs from Shri Charley on the belief that duty has been paid on them does not hold merit.

  4. As per Section 112(a) of Customs Act 1962, any person, who in relation to the goods does or omits to do any act rendering the goods liable for confiscation was liable for penalty. It is established that Shri Sunny actions in respect of the 40500 CFLs collectively valued Rs 5,00,000/- have rendered them liable for confiscation. I therefore hold that Shri Sunny is liable for penalty under Section 112 (a) of Customs Act 1962.--

    As seen from the above reproduced paragraph, the appellant was purchaser of certain CFLs imported by Shri K.T. Charley who cleared the goods by adopting a novel method from the Customs Area without payment of duty. Without going into the said modus operandi adopted by Mr Charley, we find that the Revenue in the present impugned order has nowhere referred to any evidence to show that the present appellant was...

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