NITESH KUMAR KEDIA Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) Having heard learned counsel for the parties in these seven appeals, we are inclined to frame the following substantial question of law:

(2.) The seven appellants are traders based in Chandni Chowk, Delhi and are trading in silk and unstitched cloth etc.

(3.) By an Order-in-Original dated 27th September, 2007 passed by the Commissioner of Customs, penalty of Rs. 5 lacs each was imposed on them under Section 112(b) of the Customs Act, 1962 (Act, for short). He held that they were trading and dealing with Chinese silk cloth which had been illegally imported into India and was liable for confiscation. The Chinese silk cloth was, as per the Order-in-Original, illegally imported into India by Olga Kozireva, Nazira, Shakista and Shahlo A etc. Customs duty was not paid on the said import because of connivance and abetment by the customs officers. The illegal imported Chinese silk cloth was thereafter sold by Mamoor Khan, Dil Agha, Abdul Qahar and Dilbar, who are Afghan nationals, to the appellants.