Om Prakash Doshi, Proprietor M/S. Good Luck Impex And Others vs Commissioner Of Customs (Port), Kolkata

Ashok Jindal, Member (J)

The appellants are in appeal against the impugned order with a prayer that the redemption fine and penalty be reduced on appellant No.1 Shri Om Prakash Doshi and penalty on appellant No.2 Shri Dilip Pugalia be dropped.

The facts of the case are that Shri Om Prakash Doshi, Proprietor of M/s. Good Luck Impex filed Bill of Entry against two invoices both dated 19.01.2013 for import of the assorted types of Gift Items (30 items) classifiable under different tariff items of 1st Schedule of the Customs Tariff Act, 1975. The declared value in the goods was Rs.5,43,103.45 and admitted duty was Rs.1,40,892/-. The subject Bill of Entry was assessed by the assessing group and after assessment the duty was ascertained at Rs.2,05,675/- which was paid. Thereafter, the Bill of Entry was presented before the Shed Officials for examination and during the course of examination certain items appeared to be mis-declared both in terms of description of the goods as well as value thereof. Thereafter, the goods were re-examined and statements of the appellants were recorded. Thereafter, the value was re-determined for some of the items on enhanced value, duty was sought to be recovered from the appellant, which was paid by the appellants. The goods were held to be liable for confiscation and penalty on both the appellants were imposed. The redemption fine of Rs.10.00 Lakhs was imposed and penalty of Rs.5.00 Lakhs was imposed on appellant No.1 and penalty of Rs.1.00 Lakh was imposed on the appellant No.2.

Aggrieved from the said order, the appellants prayed that the redemption fine and penalty are on the higher side, therefore, the same may be reduced and penalty on the appellant No.2 is to be dropped, as he was the employee of the appellant No.1 and whatever act he had done was on the aid and advice of the appellant No.1.

On the other hand, the Ld.AR for the department opposed the contention of the appellants.

Heard the parties, considered the submissions.

In this case, the appellants are contesting the quantum of redemption fine and penalty and penalty imposed on the appellant No.2. We find that the appellant placed orders to the various supplier and during the correspondences it has come in the knowledge of the appellant that there was mis-declaration of goods, if any, has been the mistake on the part of the supplier of the goods.

In that circumstances, although the appellants have not disputed the payment of duty, we hold that redemption fine and penalty imposed on the appellant are on higher side. Therefore, we reduce the redemption fine on the impugned goods to Rs.2.50 Lakhs and penalty to Rs.1.00 Lakh on Shri Om Prakash Doshi.

We further find that the appellant No.2 is the employee of the appellant No.1 and he has acted on the advice of the Master, therefore, we do not find any fault on the part of the appellant No.2. Accordingly, penalty on Shri Dilip Pugalia, appellant No.2 is dropped.

Appeals disposed of in the above terms.